Waupaca Company establishes a $470 petty cash fund on September 9. On September 30, the fund shows $187 in cash along with receipts for the following expenditures: transportation-in, $54; postage expenses, $77; and miscellaneous expenses, $144. 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 $515.
Waupaca Company establishes a $470 petty cash fund on September 9. On September 30, the fund shows $187 in cash along with receipts for the following expenditures: transportation-in, $54; postage expenses, $77; and miscellaneous expenses, $144. 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 $515.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 1PB: On June 1 French company has decided to initiate a petty cash fund in the amount of $800. Prepare...
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Waupaca Company establishes a $470 petty cash fund on September 9. On September 30, the fund shows $187 in cash along with receipts for the following expenditures: transportation-in, $54; postage expenses, $77; and miscellaneous expenses, $144. 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 $515.
Transcribed Image Text:Waupaca Company establishes a $470 petty cash fund on September 9. On September 30, the fund shows $187 In cash along with
receipts for the following expenditures: transportation-in, $54; postage expenses, $77; and miscellaneous expenses, $144. The petty
cashler 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 $515.
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Journal entry worksheet
<
2
1
Prepare the journal entry to establish the petty cash fund.
3
Note: Enter debits before credits.
Date
Sept 09
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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