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May 01 Petty cash Cash May 15 Janitorial expenses Miscellaneous expem Postage expenses

May 01 Petty cash Cash May 15 Janitorial expenses Miscellaneous expem Postage expenses

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter4: Internal Control And Cash
Section: Chapter Questions
Problem 61BPSB
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No Date General Journal Debit Credit 1 May 01 Petty cash 300.00 Cash 300.00 May 15 Janitorial expenses 93.60 Miscellaneous expenses 76.41 Postage expenses 52.20 Advertising expense 68.58 Cash over and short 13.80 Cash 276.99 3 May 16 Petty cash 200.00 Cash 200.00 4 May 31 Postage expenses 53.73 Mileage expense 42.78 Delivery expense 44.17 Cash over and short 35.00 Cash 105.65 5 May 31 Cash 50.00 Petty cash 50.00
Transcribed Image Text:No Date General Journal Debit Credit 1 May 01 Petty cash 300.00 Cash 300.00 May 15 Janitorial expenses 93.60 Miscellaneous expenses 76.41 Postage expenses 52.20 Advertising expense 68.58 Cash over and short 13.80 Cash 276.99 3 May 16 Petty cash 200.00 Cash 200.00 4 May 31 Postage expenses 53.73 Mileage expense 42.78 Delivery expense 44.17 Cash over and short 35.00 Cash 105.65 5 May 31 Cash 50.00 Petty cash 50.00
Problem 6-2A (Algo) Establishing, reimbursing, and adjusting petty cash LO P2 Kiona Company 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 $300 to establish the petty cash fund. May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1. May 15 a. Paid $93.60 for janitorial expenses. May 15 b. Paid $76.41 for miscellaneous expenses. May 15 c. Paid postage expenses of $52.20. May 15 d. Paid $68.58 to Facebook for advertising expense. May 15 e. Counted $23.01 remaining in the petty cashbox. May 16 Prepared a company check for $200 to increase the fund to $500. May 31 The petty cashier reports that $339.32 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15. May 31 f. Paid postage expenses of $53.73. May 31 g. Reimbursed the office manager for mileage expense, $42.78. May 31 h. Paid $44.17 in delivery expense for products 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 $50, leaving a total of $450. 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.)
Transcribed Image Text:Problem 6-2A (Algo) Establishing, reimbursing, and adjusting petty cash LO P2 Kiona Company 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 $300 to establish the petty cash fund. May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1. May 15 a. Paid $93.60 for janitorial expenses. May 15 b. Paid $76.41 for miscellaneous expenses. May 15 c. Paid postage expenses of $52.20. May 15 d. Paid $68.58 to Facebook for advertising expense. May 15 e. Counted $23.01 remaining in the petty cashbox. May 16 Prepared a company check for $200 to increase the fund to $500. May 31 The petty cashier reports that $339.32 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15. May 31 f. Paid postage expenses of $53.73. May 31 g. Reimbursed the office manager for mileage expense, $42.78. May 31 h. Paid $44.17 in delivery expense for products 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 $50, leaving a total of $450. 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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