Prepare the journal entry to establish the petty cash fund


Waupaca Company establishes a $310 petty cash fund on September 9. On September 30, the fund shows $43 in cash along with receipts for the following expenditures: transportation costs of merchandise inventory purchased, $47; postage expenses, $78; and miscellaneous expenses, $132. The petty cashier could not account for a $10 shortage in the fund. Waupaca uses the perpetual system in accounting for merchandise inventory.

(1) Prepare the journal entry to establish the Petty Cash fund.

(2.) Prepare the September 30 entry to reimburse the fund.

(3) Prepare an October 1 entry to increase the fund to $385

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Accounting Basics: Prepare the journal entry to establish the petty cash fund
Reference No:- TGS0684985

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