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Willard Company established a $340 petty cash fund on September 9, 2020. On September 30, the fund had $135.50 in cash along with receipts for these expenditures: transportation-in, $27.60; office supplies, $96.60; and repairs expense, $75.30. Willard uses the perpetual method to account for merchandise inventory. The petty cashier could not account for the $5.00 shortage in the fund. Problem a. Prepare the September 9 entry to establish the fund.
Problem b. Prepare a summary of the petty cash payments and record the entry on September 30 to reimburse the fund and reduce it to $190. (Round your answers to 2 decimal places.)
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