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.
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.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 1PB: On June 1 French company has decided to initiate a petty cash fund in the amount of $800. Prepare...
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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 $400 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
Paid $124.80 for janitorial expenses.
May
15
Paid $101.88 for miscellaneous expenses
May 15
Paid postage expenses of $69.60.
May
15
d.
Paid $91.44 to Facebook for advertising expense.
Mav
15
Counted $30.68 remaining in the petty cashbox.
May 16 Prepared a company check for $200 to increase the fund to $600.
May 31 The petty cashier
reports that $401.19 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 $64.48.
May 31 g. Reimbursed the office manager for mileage expense, $51.33.
May 31
Paid $53.00 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 $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.)
May 01.
May 15.
May 16.
May 31.
May31.
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