Waupaca Company establishes a $320 petty cash

by | Mar 18, 2020 | Uncategorized

  

Waupaca Company establishes a $320 petty cash fund on September 9. On September 30, the fund shows $107 in cash along with receipts for the following expenditures: transportation-in, $46; postage expenses, $54; and miscellaneous expenses, $106. The petty cashier could not account for a $7 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 $360.

  

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