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Question - Hawk Company establishes a $300 petty cash fund on September 9. On September 30, the fund shows $63 in cash along with receipts for the following expenditures: transportation-in, $42; postage expenses, $70; and miscellaneous expenses, $112. The petty cashier could not account for a $13 shortage in the fund. Hawk uses the perpetual system in accounting for merchandise inventory.
(1) Prepare the September 9 entry to establish the fund.
(2) Prepare the September 30 entry to reimburse the fund.
(3) Prepare an October 1 entry to decrease the fund to $225.
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