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23 December, 22:23

Havermill co. establishes a $470 petty cash fund on september 1. on september 30, the fund is replenished. the accumulated receipts on that date represent $95 for office supplies, $181 for merchandise inventory, and $44 for miscellaneous expenses. the fund has a balance of $150. on october 1, the accountant determines that the fund should be increased by $94. the journal entry to record the establishment of the fund on september 1 is:

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  1. 23 December, 22:30
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    The journal entry to record the establishment of the fund on september 1 is:

    1 September Petty Cash $ 470 Dr.

    Cash $ 470 Cr.

    31st September Office supplies, $95 Dr.

    Merchandise inventory, $ 181 Dr.

    Miscellaneous expenses $ 44 Dr.

    Cash $320 Cr.

    To reimburse Petty Cash

    The journal entry to reimburse and to increase the fund are same.

    October 1 Petty Cash $ 94

    Cash $ 94

    To increase the Petty Cash by $ 94
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