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EcoMart establishes a $1,050 petty cash fund on May 2. On May 30 , the...

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Accounting

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EcoMart establishes a $1,050 petty cash fund on May 2. On May 30 , the fund shows $326 in cash along with receipts for the following expenditures: transportation-in, $120; postage expenses, $369; and miscellaneous expenses, $240. The petty cashier could not account for a \$ 5 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 $5 and credit Cash for $724, and (3) June I entry to increase the fund to $1,200. Exercise 8.9 Petty cash fund with an overage P2

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