Saved Problem 8-2A Establishing, reimbursing, and adjusting petty cash LO P2 Kio

Question

Saved Problem 8-2A Establishing, reimbursing, and adjusting petty cash LO P2 Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions in May (the last month of the company's fiscal year) involving the petty cash fund occurred in May 1 Prepared a company check for s300 to establish the petty cash fund 15 Prepared a company check to replenish the fund for the following expenditures made since May 1. a. Paid $88 for janitorial services b. Paid $53.68 for miscellaneous expenses c. Paid postage expenses of $53.50 d. Paid $47.15 to The County Gazette (the local newspaper) for an advertisement e. Counted $62.15 remaining in the petty cashbox 16 Prepared a company check for $200 to increase the fund to $500 that $288. 20 cash renains in the fund. A company check is dravn to replenish the fund for t following expenditures made since May 15 f. Paid postage expenses of $147.36 g. Reimbursed the office manager for business mileage, $23.se h. Paid $34.75 to deliver merchandise to a customer, terms FOB destination 6 increase in the fund was too large. It reduces the fund by $s1e0, leaving a total of $480 Required: 1. 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.) View transaction list Journal entry worksheet Prepared a company check for $300 to establish the petty cash fund. Note: Enter debits before credits. General Journal Debit Credit Date May 01 K Prev 6 of 9 Next>

Explanation / Answer

Amount in $ Date Account title & Explanation Debit Credit May-01 Petty Cash 300 Cash 300 To record the establishment of petty cash fund May-15 Janitorial expenses 88 Miscallaneous expenses 53.68 Postage expenses 53.5 Advertisement expenses 47.14 Petty cash 242.32 To record the expenditure through petty cash May-15 Petty cash 242.32 Cash 242.32 To record the replenishment of petty cash expenditure May-16 Petty cash 200 Cash 200 To record increase/addition in the petty cash fund May-31 Postage expenses 147.36 Travelling expenses 23.5 Freight out expenses 34.75 Petty cash 205.61 To record the expenditure through petty cash May-31 Petty cash 205.61 Cash 205.61 To record the replenishment of petty cash expenditure May-31 Cash 100 Petty cash 100 To record the decrease/withdrawl in petty cash fund

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