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:

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

answer; work samples;

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

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