Question
Exercise 6-8 Petty cash fund with a shortage LO P2 Waupaca Company establishes a $390 petty cash fund on September 9. On September 30, the
Exercise 6-8 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 $128 in cash along with receipts for the following expenditures: transportation-in, $58; postage expenses, $76; and miscellaneous expenses, $123. The petty cashier could not account for a $5 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started