I need help filling in the above boxes: The column - Impact transaction has on i

Question

I need help filling in the above boxes:

The column - Impact transaction has on income gives me these options, Net income was unchanged, Net income increased by, Net income decreased by

Lee Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May May 1 Prepared a company check for $550 to establish the petty cash fund May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1 a. Paid $192 for janitorial services. b. Paid $144 for miscellaneous expenses c. Paid postage expenses of $96 d. Paid $49 to The County Gazette (the local newspaper) for an advertisement. e. Counted $77 remaining in the petty cash box May 16 Prepared a company check for $250 to increase the fund to $800 May 31 The petty cashier reports that $320 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15 f. Paid postage expenses of $282 g. Reimbursed the office manager for business mileage, $141 h. Paid $47 to deliver merchandise to a customer, terms FOB destination. May 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $200, leaving a total of $600 General Journal General Ledger Impact on income Requirement Trial Balance Indicate the impact each transaction had on net income. Enter decreases to net income as negative values Dates: May 01 to: May 31 Impact transaction has on income: Amount of increase decrease Transaction May 1) Prepared a company check for $550 to establish the petty cash fund Net income was unchanged May 15) Prepared a company check to replenish the fund for the following expenditures made since

Explanation / Answer

Indicate impact each transaction had on Net Income   Date Transaction Impact Transaction has on Income Amount of increse /(Decrese) May-01 Prepared check for $550 to establish petty cash fund Net income was Unchanged $0 May-15 Prepared check to replenish cash fund for the follwing expenditure made No impact for replenish fund but income will decrese to the extent of expenditures incurred . Total Expenses $481     (192+144+96+49) Net income Decresed by $481 ($481) May-16 Prepared check for $250 to increse fund to $800 Net income was Unchanged $0 May-31 Prepared check to replenish cash fund for the follwing expenditure made No impact for replenish fund but income will decrese to the extent of expenditures incurred . Total Expenses $470     (282+141+47) Net income Decresed by $470 ($470) May-31 Company reduces the Fund Level by $200 to maintain at $600 fund Net income was Unchanged $0 In Total , Net income Incresed / (Decresed) ($951)

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