Question

Waupaca Company establishes a $390 petty cash fund on September 9. On September 30, the fund shows $162 in cash along with receipts for the following expenditures: transportation-in, $46; postage expenses, $68; and miscellaneous expenses, $106. The petty cashier could not account for a $8 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 $435.

Answer 1

Answer
Journal entry
Date	Account Titles and Explanations	Debit	Credit
09-Sep	Petty cash	$         390
	To, Cash		$         390
30-Sep	Merchandise inventory	$           46
	Postage expenses	$           68
	Miscellaneous expenses	$         106
	Cash short and over	$             8
	To, Cash		$         228
01-Oct	Petty Cash ($435- $390)	$           45
	To, Cash		$           45