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Exercise 8-9 (Algo) Petty cash fund with an overage LO P2 Eco Mart establishes a...

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Accounting

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Exercise 8-9 (Algo) Petty cash fund with an overage LO P2 Eco Mart establishes a $2,050 petty cash fund on May 2. On May 30, the fund shows $868 in cash along with receipts for the following expenditures: transportation-in. $160: postage expenses. $589; and miscellaneous expenses, $440. The petty cashier could not account for a $7 average 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 $7 and credit Cash for $1,182), and (3) June 1 entry to increase the fund to $2,400. View transaction list Journal entry worksheet

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