Exercise 6-5 Petty cash fund with a shortage LO P2

Waupaca Company establishes a $390 petty cash fund on September 9. On September 30, the fund shows $150 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $47; postage expenses, $73; and miscellaneous expenses, $117. The petty cashier could not account for a $3 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $440.

1 Prepare the journal entry to establish the Petty Cash fund. 2 Record the reimbursement of the petty cash fund. 3 Record the increase of the petty cash fund