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 2
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 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 2
![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
3
Record the May 2 entry to establish the fund.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
May 02
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F950ccb0b-88f0-424e-a789-46ed3bd2a086%2F73f6292a-dcc0-435f-9f1d-be90ea035d61%2Fbkyjwys_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
3
Record the May 2 entry to establish the fund.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
May 02
Record entry
Clear entry
View general journal
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