Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $104 in cash along with receipts for the following expenditures: printing expenses, $40; postage expenses, $123; and miscellaneous expenses, $80. The petty cashier could not account for a $3 shortage in the fund. Prepare:
(1) the September 9 entry to establish the fund,
(2) the September 30 entry to reimburse the fund, and
(3) an October 1 entry to increase the fund to $400.

Please see explanation for answers

Explanation:

Journal to record establishment of fund

Date                  Account titles and explanation            Debit     Credit

Sept 9                    Petty cash                                          $350

                              To Cash                                                                  $350

Journal to record the reimbursement of petty cash fund

Date                  Account titles and explanation            Debit     Credit

September 30    printing expenses                                 $40

                        Postage expense                                     $123

Miscellaneous expenses                                                 $80

Cash shortage - not accounted for                                   $3

                           To Cash                                                                      $246

Journal to show the increment of fund to $400

Date                  Account titles and explanation            Debit       Credit

October 1        Petty cash                                               $50              

                        To Cash                                                                       $50

Calculation : ($400 - $350)=$50

answer; capital structure decision;

answer(c) factors of production;