EcoMart establishes a $1,700 petty cash fund on May 2. On May 30, the fund shows $678 in cash along with receipts for the following expenditures: transportation-in, $146; postage expenses, $512; and miscellaneous expenses, $370. The petty cashier could not account for a $6 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare the (1) May 2 entry to establish the fund, (2) May 30 entry to reimburse the fund [Hint: Credit Cash Over and Short for $6 and credit Cash for $1,022], and (3) June 1 entry to increase the fund to $1,980. View transaction list Journal entry worksheet < 1 2 3 Record the May 2 entry to establish the fund. Note: Enter debits before credits. Date May 02 General Journal Debit Credit Record entry Clear entry View general Journal >
EcoMart establishes a $1,700 petty cash fund on May 2. On May 30, the fund shows $678 in cash along with receipts for the following expenditures: transportation-in, $146; postage expenses, $512; and miscellaneous expenses, $370. The petty cashier could not account for a $6 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare the (1) May 2 entry to establish the fund, (2) May 30 entry to reimburse the fund [Hint: Credit Cash Over and Short for $6 and credit Cash for $1,022], and (3) June 1 entry to increase the fund to $1,980. View transaction list Journal entry worksheet < 1 2 3 Record the May 2 entry to establish the fund. Note: Enter debits before credits. Date May 02 General Journal Debit Credit Record entry Clear entry View general Journal >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Provide all 3 graphs
![EcoMart establishes a $1,700 petty cash fund on May 2. On May 30, the fund shows $678 in cash along with receipts for the following
expenditures: transportation-in, $146; postage expenses, $512; and miscellaneous expenses, $370. The petty cashier could not
account for a $6 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory.
Prepare the (1) May 2 entry to establish the fund, (2) May 30 entry to reimburse the fund [Hint: Credit Cash Over and Short for $6 and
credit Cash for $1,022], and (3) June 1 entry to increase the fund to $1,980.
View transaction list
Journal entry worksheet
<
1
2 3
Record the May 2 entry to establish the fund.
Note: Enter debits before credits.
Date
May 02
General Journal
Debit
Credit
Record entry
Clear entry
View general Journal
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2726b86c-9401-4962-91ce-c5e401005271%2F9350dd35-5e09-4d10-b9ec-c5903944ba59%2Fm9d7iol_processed.jpeg&w=3840&q=75)
Transcribed Image Text:EcoMart establishes a $1,700 petty cash fund on May 2. On May 30, the fund shows $678 in cash along with receipts for the following
expenditures: transportation-in, $146; postage expenses, $512; and miscellaneous expenses, $370. The petty cashier could not
account for a $6 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory.
Prepare the (1) May 2 entry to establish the fund, (2) May 30 entry to reimburse the fund [Hint: Credit Cash Over and Short for $6 and
credit Cash for $1,022], and (3) June 1 entry to increase the fund to $1,980.
View transaction list
Journal entry worksheet
<
1
2 3
Record the May 2 entry to establish the fund.
Note: Enter debits before credits.
Date
May 02
General Journal
Debit
Credit
Record entry
Clear entry
View general Journal
>
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