EcoMart establishes a $1,600 petty cash fund on May 2. On May 30, the fund shows $628 in cash along with receipts for the following
expenditures: transportation-in, $142; postage expenses, $490; and miscellaneous expenses, $350. The petty cashier could not
account for a $10 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory.
Prepare the (1) May 2 entry to establish the fund, (2) May 30 entry to reimburse the fund [Hint. Credit Cash Over and Short for $10 and
credit Cash for $972), and (3) June 1 entry to increase the fund to $1,860.
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1 Record the May 2 entry to establish the fund.
2 Record the May 30 entry to reimburse the fund.
3 Record the June 1 entry to increase the fund to $1,860.
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Note:
= Journal entry has been entered.
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