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Exercise 6-8 Chapter 6 Reporting and Analyzing Cash, Fraud, and Internal Control 257 Exercise 6-8 Petty cash fund with a shortage P2 Check (2) Cr

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Chapter 6 Reporting and Analyzing Cash, Fraud, and Internal Control 257 Exercise 6-8 Petty cash fund with a shortage P2 Check (2) Cr Cash, 5246 and (3) Cr Cash $50 4. To save time, all departments are allowed to incur liabilities. 5. Payments over $100 are made by check. 8. Requesting and receiving merchandise are handled by the same department. Waupaca Company establishes a $350 petty cash fund on September 9. on September 30, the fund shows 5104 in cash along with receipts for the following expenditures: transportation-in, 540: postage expenses $123; and miscellaneous expenses, $80. 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 $400. EcoMart establishes a $1,050 petty cash fund on May 2. On May 30, the fund shows $326 in cash along Exercise 6-9 with receipts for the following expenditures: transportation-in. $120; postage expenses, $369; and miscel- laneous expenses, $240. The petty cashier could not account for a $5 overage in the fund. The company an overage uses the perpetual system in accounting for merchandise inventory. P2 Prepare the (1) May 2 entry to establish the fund, (2) May 30 entry to reimburse the fund (Hint: Credit Cash Over and Short for $5 and credit Cash for $724), and (3) June I entry to increase the fund to $1,200. Palmona Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along Exercise 6-10 with receipts for the following expenditures: postage. $74; transportation-in, $29; delivery expenses, 516; and P2 miscellaneous expenses, $43. Paimona uses the perpetual system in accounting for merchandise inventory. 1. Prepare the entry to establish the fund on January 1. 2. Prepare the entry to reimburse the fund on January 8 under two separate situations. a. To reimburse the fund. Petty cash fund with Petty cash fund accounting b. To reimburse the fund and increase it to $450. Hint: Make two entries. a table with the following headings for a monthly bank reconciliation dated September 30. Indicate to or deducted from the book or bank balance and whether it should or Exercise 6-11 Bank reconciliation and adjusting entries Prepare that add or deduct from the book balance

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