EcoMart establishes a $2,000 petty cash fund on May 2. On May 30, the fund shows $840 in cash along with receipts for the following expenditures: transportation-in, $158; postage expenses, $578; and miscellaneous expenses, $430. The petty cashier could not account for a $6 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory.
EcoMart establishes a $2,000 petty cash fund on May 2. On May 30, the fund shows $840 in cash along with receipts for the following expenditures: transportation-in, $158; postage expenses, $578; and miscellaneous expenses, $430. The petty cashier could not account for a $6 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![es
EcoMart establishes a $2,000 petty cash fund on May 2. On May 30, the fund shows $840 in cash along with receipts for the following
expenditures: transportation-in, $158; postage expenses, $578; and miscellaneous expenses, $430. 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 $1,160], and (3) June 1 entry to increase the fund to $2,340.
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%2F03286be5-c453-43aa-83bc-a29a38f127b5%2F48461dac-a332-4732-9fd8-b18c76c1ed64%2Flif8er_processed.png&w=3840&q=75)
Transcribed Image Text:es
EcoMart establishes a $2,000 petty cash fund on May 2. On May 30, the fund shows $840 in cash along with receipts for the following
expenditures: transportation-in, $158; postage expenses, $578; and miscellaneous expenses, $430. 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 $1,160], and (3) June 1 entry to increase the fund to $2,340.
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education