Gannon Company Sum - 20350

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  • Posted on: Sun 28 Jul, 2013
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Request Description

Petty cash fund with a shortage

Check (2) Cr. Cash $234 and Dr. Cash $100

 

Gannon Company establishes a $400 petty cash fund on September 9. On September 30, the fund shows $166 in cash along with receipts for the following expenditures: transportation-in, $32; postage expenses, $113; and miscellaneous expenses, $87. The petty cashier could not account for a $2 shortage in the fund. Gannon uses the perpetual system in accounting for merchandise inventory. Prepare

(1) the September 9 entry to establish the fund and

 

 

(2) the September 30 entry to both reimburse the fund and reduce it to $300.

Solution Description

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Gannon Company ...