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Waupaca Company establishes a $460 petty cash fund on September 9. On September 30, the fund shows $159 in cash along with receipts for the following expenditures: transportation-in, $60; postage expenses, $76; and miscellaneous expenses, $150. The petty cashier could not account for a $15 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 $525.
Expert Answer
| Waupaca Company | |||
| Journal Entries | |||
| Date | Particulars | Debit | Credit |
| September 9 | Petty Cash | $460 | |
| To Cash | $460 | ||
| September 30 | Transportation-in | $60 | |
| Postage Expenses | $76 | ||
| Miscellaneous Expenses | $150 | ||
| Cash Short and Over | $15 | ||
| To Petty Cash | $301 | ||
| Petty Cash | $301 | ||
| To Cash | $301 | ||
| October 1 | Petty Cash | $65 | |
| To Cash | $65 | ||
