Waupaca Company establishes a $450 petty cash fund on September 9. On September 30, the fund shows $213 in cash along with receipts for the following expenditures: transportation-in, $40; postage expenses, $75; and miscellaneous expenses, $110. The petty cashier could not account for a $12 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 $520.

Waupaca Company General Journal

Sept 09

Dr Petty cash$450

Cr Cash $450

Sept 30

Dr Transportation in$40

Dr Postage expense$75

Dr Miscellaneous expense$110

Dr Cash short and over$12

Cr Cash $237

October 1

Dr Petty cash$70

Cr Cash $70

Explanation:

Sept 09

To establish petty cash fund by debiting Petty cash with $450 and Crediting Cash with the same amount

Sept 30

To record expenses by Debiting all the expenditure and crediting cash

Oct 1

To increase petty cash balance by Debiting Dr Petty cash$70(520-450) and Crediting Cash with the same amount

answer; (cash) is the best out of the above; good luck

answer; commerce clearing house;