Kiona Co. set up a petty cash fund for payments of small amounts. The following
ID: 2525599 • Letter: K
Question
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 $329.32 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.)
Journal entry worksheet
Prepared a company check for $300 to establish the petty cash fund.
Note: Enter debits before credits.
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
Journal Entries In the Books of Kiona Co
May 01
Dr Petty cash $300
Cr Cash $300
May 15
Dr Janitorial expenses $93.60
Dr Miscellaneous expenses $76.41
Dr Postage expenses $52.20
Dr Advertising expense $68.58
Cr Cash over and short $13.80
Cr Cash $276.99
*$276.99 = $300 - $23.01
**$13.80 = $276.99 – ($93.60+$76.41+$52.20+$68.58)
May 16
Dr Petty cash $200
Cr Cash $200
May 31
Dr Postage expenses $53.73
Dr Mileage expense $42.78
Dr Delivery expense $44.17
Dr Cash over and short $30
Cr Cash $170.68
*$170.68 = $500 - $329.32
**170.68 – ($53.73+$42.78-$44.17)
May 31
Dr Cash 50.00
Cr Petty cash 50.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.