Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $104 in cash along with receipts for the following expenditures: transportation-in, $40; postage expenses, $123; and miscellaneous expenses, $80. The petty cashier could not account for a $3 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 $400.
Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $104 in cash along with receipts for the following expenditures: transportation-in, $40; postage expenses, $123; and miscellaneous expenses, $80. The petty cashier could not account for a $3 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 $400.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows
$104 in cash along with receipts for the following expenditures: transportation-in, $40; postage expenses,
$123; and miscellaneous expenses, $80. The petty cashier could not account for a $3 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 $400.
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