Waupaca Company establishes a $440 petty cash fund on September 9. On September

Question

Waupaca Company establishes a $440 petty cash fund on September 9. On September 30, the fund shows $209 in cash along with receipts for the following expenditures: transportation-in, $51; postage expenses, $56; and miscellaneous expenses, $116. The petty cashier could not account for a $8 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 $500.

Explanation / Answer

Date General Journal Debit Credit Sep-09 Petty cash 440 Cash 440 Sep-30 Merchandise inventory 51 Postage expense 56 Miscellaneous expenses 116 Cash short and over 8 Cash 231 Oct-01 Petty cash 60 Cash 60

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