Hawk Company establishes a $360 petty cash fund on September 9. On
September 30, the fund shows $75 in cash along with receipts for the
following expenditures: transportation-in, $58; postage expenses, $69;
and miscellaneous expenses, $153. The petty cashier could not account
for a $5 shortage in the fund. Hawk uses the perpetual system in
accounting for merchandise inventory.
(1) Prepare the September 9 entry to establish the fund.
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Prepare the September 30 entry to reimburse the fund.
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Prepare an October 1 entry to decrease the fund to $320.
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Explanation:
(1) Prepare the September 9 entry to establish the fund.
Prepare the September 30 entry to reimburse the fund.
Prepare an October 1 entry to decrease the fund to $320.
Explanation:
2. | |
Merchandise Inventory: Transportation-in costs are included in the Merchandise Inventory account under a perpetual system.
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