Exercise 8-5 Petty cash fund with a shortage LO P2

Waupaca Company establishes a $410 petty cash fund on September 9. On September 30, the fund shows $171 in cash along with receipts for the following expenditures: transportation-in, $40; postage expenses, $62; and miscellaneous expenses, $135. The petty cashier could not account for a $2 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 $480.