oblem 6-2A Establish, reimburse, and adjust petty cash LO P2 Kiona Co. set up a
ID: 2415803 • Letter: O
Question
oblem 6-2A Establish, reimburse, and adjust petty cash LO P2
Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year).
Prepared a company check to replenish the fund for the following expenditures made since May 1.
Prepared a company check for $200 to increase the fund to $500.
The petty cashier reports that $354.32 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
g. Reimbursed the office manager for business mileage, $42.78.
h. Paid $44.17 to deliver merchandise to a customer, terms FOB destination.
The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $450.
Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to reflect any increase or decrease in the fund balance on May 16 and May 31. (Round your answers to 2 decimal places.)
1.
Prepared a company check for $300 to establish the petty cash fund.
2.
Prepared a company check to replenish the fund for the expenditures made since May 1.
3.
Prepared a company check for $200 to increase the fund to $500.
4.
Record the entry to replenish the fund for the expenditures made since May 15.
5.
The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $450.
Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year).
Explanation / Answer
Solution.
May 1 Prepared a company check for $300 to establish the petty cash fund.
Petty Cash Account Debited $300
Cash Account Credited $300
15 Prepared a company check to replenish the fund for the following expenditures made since May 1
Janatorial Expense Account Debited $ 93.60
Miscellaneous Expense Account Debited $ 76.41
Postage Expense Account Debited $52.20
Advertising Expense Account Debited $ 68.58
Over/Short Account Credited $13.80
Cash Account Credited $276.99
16 Prepared a company check for $200 to increase the fund to $500.
Petty Cash Account Debited $200
Cash Account Credited $200
31 The petty cashier reports that $344.33 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
Postage Expense Account Debited $53.73
Mileage Expense Account Debited $42.78
Freight-Out Account Debited $44.17
Over/Short Account Debited $14.99
Cash Account Credited $155.67
31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $450.
Cash Account Debited $50
Petty Cash Account Credited $50
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