Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $68 in cash along with receipts for the following expenditures: transportation-in, $59; postage expenses, $65; and miscellaneous expenses, $149. The petty cashier could not account for a $9 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 $395.
Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $68 in cash along with receipts for the following expenditures: transportation-in, $59; postage expenses, $65; and miscellaneous expenses, $149. The petty cashier could not account for a $9 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 $395.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 4EB: Record the following transactions: A. Started a petty cash fund in the amount of $1,000. B....
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Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $68 in cash along with receipts for the following expenditures: transportation-in, $59; postage expenses, $65; and miscellaneous expenses, $149. The petty cashier could not account for a $9 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 $395.
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