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). May 1 Prepared a company check for $400 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 $124.80 for janitorial expenses. b. Paid $101.88 for miscellaneous expenses. c. Paid postage expenses of $69.60. d. Paid $91.44 to Facebook for advertising expense. e. Counted $30.68 remaining in the petty cashbox. 16 Prepared a company check for $200 to increase the fund to $600. 31 The petty cashier reports that $406.19 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 $64.48. g. Reimbursed the office manager for mileage expense, $51.33. h. Paid $53.00 in delivery expense for products to a customer, terms FOB destination. 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 $550. Required: 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.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 2PB: On July 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare...

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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).

May	1	Prepared a company check for $400 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 $124.80 for janitorial expenses.
		b. Paid $101.88 for miscellaneous expenses.
		c. Paid postage expenses of $69.60.
		d. Paid $91.44 to Facebook for advertising expense.
		e. Counted $30.68 remaining in the petty cashbox.
	16	Prepared a company check for $200 to increase the fund to $600.
	31	The petty cashier reports that $406.19 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 $64.48.
		g. Reimbursed the office manager for mileage expense, $51.33.
		h. Paid $53.00 in delivery expense for products to a customer, terms FOB destination.
	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 $550.

Required:
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.)

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