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Waupaca Company establishes a $390 petty cash fund on September 9. On September 30, the fund shows $158 in cash along with receipts for the following expenditures: transportation-in, $41; postage expenses, $51; and miscellaneous expenses, $131. 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 $425. View transaction list Journal entry worksheet 1 2 3 > Prepare the journal entry to establish the petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit Sept 09 Record entry Clear entry View general journal

Waupaca Company establishes a $390 petty cash fund on September 9. On September 30, the fund shows $158 in cash along with receipts for the following expenditures: transportation-in, $41; postage expenses, $51; and miscellaneous expenses, $131. 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 $425. View transaction list Journal entry worksheet 1 2 3 > Prepare the journal entry to establish the petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit Sept 09 Record entry Clear entry View general journal

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Waupaca Company Petty Cash Fund and Journal Entry Exercise** **Scenario:** Waupaca Company establishes a $390 petty cash fund on September 9th. On September 30th, the fund shows $158 in cash, along with receipts for various expenditures: - Transportation-in: $41 - Postage expenses: $51 - Miscellaneous expenses: $131 There was an unaccounted $9 shortage in the fund. The company uses the perpetual system for merchandise inventory accounting. **Tasks:** 1. Prepare the September 9 entry to establish the fund. 2. Prepare the September 30 entry to reimburse the fund. 3. Prepare the October 1 entry to increase the fund to $425. **Journal Entry Worksheet:** This section provides a journal entry worksheet meant for recording financial transactions. You can input details such as the date, general journal entry, debit, and credit amounts. - **Date:** The date of the transaction. - **General Journal:** Description of the transaction. - **Debit:** Enter debits before credits according to standard accounting practices. - **Credit:** Corresponding credits for the transaction. **Controls:** - "Record entry" button: Use this to finalize and record your journal entry. - "Clear entry" button: This clears any data entered in the worksheet to start afresh. - "View general journal" button: Access the compiled list of all recorded transactions. This exercise aims to help users understand and apply the process of recording petty cash transactions and adjusting them for shortages or fund changes.
Transcribed Image Text:**Waupaca Company Petty Cash Fund and Journal Entry Exercise** **Scenario:** Waupaca Company establishes a $390 petty cash fund on September 9th. On September 30th, the fund shows $158 in cash, along with receipts for various expenditures: - Transportation-in: $41 - Postage expenses: $51 - Miscellaneous expenses: $131 There was an unaccounted $9 shortage in the fund. The company uses the perpetual system for merchandise inventory accounting. **Tasks:** 1. Prepare the September 9 entry to establish the fund. 2. Prepare the September 30 entry to reimburse the fund. 3. Prepare the October 1 entry to increase the fund to $425. **Journal Entry Worksheet:** This section provides a journal entry worksheet meant for recording financial transactions. You can input details such as the date, general journal entry, debit, and credit amounts. - **Date:** The date of the transaction. - **General Journal:** Description of the transaction. - **Debit:** Enter debits before credits according to standard accounting practices. - **Credit:** Corresponding credits for the transaction. **Controls:** - "Record entry" button: Use this to finalize and record your journal entry. - "Clear entry" button: This clears any data entered in the worksheet to start afresh. - "View general journal" button: Access the compiled list of all recorded transactions. This exercise aims to help users understand and apply the process of recording petty cash transactions and adjusting them for shortages or fund changes.
**Journal Entry Worksheet Description** **Context:** Waupaca Company establishes a $390 petty cash fund on September 9. On September 30, the fund shows $158 in cash along with receipts for the following expenditures: transportation-in, $41; postage expenses, $55; and miscellaneous expenses, $31. The petty cashier could not account for a $9 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. **Tasks:** 1. Prepare the September 9 entry to establish the fund. 2. Prepare the September 30 entry to reimburse the fund. 3. Prepare the October 1 entry to increase the fund to $425. **Interface Explanation:** The interface features an interactive "Journal entry worksheet" with three tabs to record different transactions. Each tab allows users to input dates, accounts, debits, and credits related to the petty cash fund activities. **Interface Features:** - **Transaction Tabs:** Users navigate between three numbered tabs representing different entries. - **Date and General Journal Inputs:** Each tab includes fields for entering the date and specific details about the transaction, with separate columns for debits and credits. - **Buttons:** - "Record entry" to save the inputted transaction. - "Clear entry" to reset the fields and start over. - "View general journal" to see the overview of recorded entries. Each worksheet reminds users to "Enter debits before credits." **Diagram Features:** - **Tab 1 (September 9):** For recording the establishment of the petty cash fund. - **Tab 2 (September 30):** For recording reimbursements and accounting for shortages. - **Tab 3 (October 1):** For recording fund increases to $425. The process emphasizes accurate record-keeping and adjustments in the petty cash fund, critical for maintaining financial integrity in business operations.
Transcribed Image Text:**Journal Entry Worksheet Description** **Context:** Waupaca Company establishes a $390 petty cash fund on September 9. On September 30, the fund shows $158 in cash along with receipts for the following expenditures: transportation-in, $41; postage expenses, $55; and miscellaneous expenses, $31. The petty cashier could not account for a $9 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. **Tasks:** 1. Prepare the September 9 entry to establish the fund. 2. Prepare the September 30 entry to reimburse the fund. 3. Prepare the October 1 entry to increase the fund to $425. **Interface Explanation:** The interface features an interactive "Journal entry worksheet" with three tabs to record different transactions. Each tab allows users to input dates, accounts, debits, and credits related to the petty cash fund activities. **Interface Features:** - **Transaction Tabs:** Users navigate between three numbered tabs representing different entries. - **Date and General Journal Inputs:** Each tab includes fields for entering the date and specific details about the transaction, with separate columns for debits and credits. - **Buttons:** - "Record entry" to save the inputted transaction. - "Clear entry" to reset the fields and start over. - "View general journal" to see the overview of recorded entries. Each worksheet reminds users to "Enter debits before credits." **Diagram Features:** - **Tab 1 (September 9):** For recording the establishment of the petty cash fund. - **Tab 2 (September 30):** For recording reimbursements and accounting for shortages. - **Tab 3 (October 1):** For recording fund increases to $425. The process emphasizes accurate record-keeping and adjustments in the petty cash fund, critical for maintaining financial integrity in business operations.
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