Help Save Exit Check Exercise 65 Petty cash fund with a sho

Help Save & Exit Check Exercise 6-5 Petty cash fund with a shortage LO P2 Waupaca Company establishes a $490 petty cash fund on September 9. On September 30, the fund shows $237 in cash along with receipts for the following expenditures: transportation-in $57; postage expenses, $58; 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 () the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the increase the fund to $530 fund, and (3) an October 1 entry to View transaction list Journal entry worksheet Prepare the journal entry to establish the Petty Cash fund. Debit Credit General J C Prev 1 of 1 Next

Solution

The following are the journal entries:

Date	general journal	debit	credit
september 9	Petty cash a/c	490
	.............To Cash a/c		490
	(to establish petty cash fund)
september 30	merchandise inventory a/c (transportation cost)	57
	postage expense	58
	miscelleneous expenses	132
	cash short and over	6
	..........To Cash		253
	(to reimburse the fund)
oct 1	Petty cash a/c	40
	.........To Cash		40
	(to increase fund to $530)