Waupaca Company establishes a $470 petty cash fund on September 9. On September
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Question
Waupaca Company establishes a $470 petty cash fund on September 9. On September 30, the fund shows $229 in cash along with receipts for the following expenditures: transportation-in, $47; postage expenses, $56; and miscellaneous expenses, $132. The petty cashier could not account for a $6 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory.
Waupaca Company establishes a $470 petty cash fund on September 9. On September 30, the fund shows $229 in cash along with receipts for the following expenditures: transportation-in, $47; postage expenses, $56; and miscellaneous expenses, $132. The petty cashier could not account for a $6 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 $505.Explanation / Answer
9-Sep Petty cash fund Debit 470 Cash Credit 470 30-Sep Petty cash fund Debit 235 Cash Credit 235 1-Oct Petty cash fund Debit 35 Cash Credit 35
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