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Exercise 8-5 Petty cash fund with a shortage LO P2 Waupaca Company establishes a $340 petty cash fund on September 9. On September 30, the

Exercise 8-5 Petty cash fund with a shortage LO P2 Waupaca Company establishes a $340 petty cash fund on September 9. On September 30, the fund shows $59 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $54; postage expenses, $61; and miscellaneous expenses, $154. The petty cashier could not account for a $12 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 $375.

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