Question: Waupaca Company establishes a $300 petty cash fund on September 9. On September 30, the fund shows $81 in cash along with receipts for the following expenditures: transportation-in, $33; postage expenses, $112; and miscellaneous expenses, $68. The petty cashier could not account for a $6 shortage in the fund. Gannon uses the perpetual system in accounting for merchandise inventory. Prepare journal entries for the following
1. The September 9 entry to establish the fund
2. The September 30 entry to both reimburse the fund.
3. An October 1 entry to increase the fund to $350.