Question

 Exercise 8-5 Petty cash fund with a shortage LO P2

 Waupaca Company establishes a $490 petty cash fund on September 9. On September 30, the fund shows $224 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $52; postage expenses, $65; and miscellaneous expenses, $142. The petty cashier could not account for a $7 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 $535.

Exercise 8-5 Petty cash fund with a shortage LO P2 Waupaca Company establishes a $490 petty cash fund on September 9. On September 30, the fund shows $224 in cash along with receipts for the following expenditures transportation costs of merchandise purchased, $52: postage expenses, $65; and miscellaneous expenses, $142. The petty cashier could not account for a $7 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 $535

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 $535. 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 9 Record entry Clear entry View general journal

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 $535 View transaction list Journal entry worksheet Record the reimbursement of the petty cash fund. Note: Enter debits before credits Date General Journal Debit Credit Sept 30 Record entry Clear entry View general journal

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Answer 1

Sep 9	Petty cash	490
	Cash		490
Sep 30	Merchandise inventory	52
	Postage expenses	65
	Miscellaneous expenses	142
	Cash short and over	7
	Cash		266
Oct 1	Petty cash	45
	Cash (535-490)		45