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Exercise 8-9 Petty cash fund with an overage LO P2 EcoMart establishes a $1050 petty...

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Accounting

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Exercise 8-9 Petty cash fund with an overage LO P2 EcoMart establishes a $1050 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 55.and Credit Cash for $724, and (3) June 1 entry to increase the fund to $1200

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