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EcoMart establishes a $1,700 petty cash fund on May 2. On May 30, the fund shows $678 in cash along with receipts for the following expenditures: transportation-in, $146; postage expenses, $512; and miscellaneous expenses, $370. The petty cashier could not account for a $6 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 $6 and credit Cash for $1,022], and (3) June 1 entry to increase the fund to $1,980. View transaction list Journal entry worksheet < 1 2 3 Record the May 2 entry to establish the fund. Note: Enter debits before credits. Date May 02 General Journal Debit Credit Record entry Clear entry View general Journal >

EcoMart establishes a $1,700 petty cash fund on May 2. On May 30, the fund shows $678 in cash along with receipts for the following expenditures: transportation-in, $146; postage expenses, $512; and miscellaneous expenses, $370. The petty cashier could not account for a $6 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 $6 and credit Cash for $1,022], and (3) June 1 entry to increase the fund to $1,980. View transaction list Journal entry worksheet < 1 2 3 Record the May 2 entry to establish the fund. Note: Enter debits before credits. Date May 02 General Journal Debit Credit Record entry Clear entry View general Journal >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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EcoMart establishes a $1,700 petty cash fund on May 2. On May 30, the fund shows $678 in cash along with receipts for the following expenditures: transportation-in, $146; postage expenses, $512; and miscellaneous expenses, $370. The petty cashier could not account for a $6 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 $6 and credit Cash for $1,022], and (3) June 1 entry to increase the fund to $1,980. View transaction list Journal entry worksheet < 1 2 3 Record the May 2 entry to establish the fund. Note: Enter debits before credits. Date May 02 General Journal Debit Credit Record entry Clear entry View general Journal >
Transcribed Image Text:EcoMart establishes a $1,700 petty cash fund on May 2. On May 30, the fund shows $678 in cash along with receipts for the following expenditures: transportation-in, $146; postage expenses, $512; and miscellaneous expenses, $370. The petty cashier could not account for a $6 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 $6 and credit Cash for $1,022], and (3) June 1 entry to increase the fund to $1,980. View transaction list Journal entry worksheet < 1 2 3 Record the May 2 entry to establish the fund. Note: Enter debits before credits. Date May 02 General Journal Debit Credit Record entry Clear entry View general Journal >
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