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Willard company established a $500 petty cash fund on september 9, 2020. On Septemeber 30, the fund had $199.40 in cash along with receipts for these expenditures: transportation-in, $40.50; office supplies, $141.70; and repairs expense, $111.40. Willard uses the perpetual method to account for merchandise inventory. The petty cashier could not account for the $7.00 shortage in the fund.
Problem a) Prepare the september 9 entry to establish the funds.
Problem b) Prepare summary of the petty cash payments and record the journal entry on September 30 to reimburse the fund and reduce it to $350.
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