CHAPTER 8-HOMEWORK Prob. 2A &4A Problem 8-2A Establishing, reimbursing, and adju
ID: 2511889 • Letter: C
Question
CHAPTER 8-HOMEWORK Prob. 2A &4A Problem 8-2A Establishing, reimbursing, and adjusting petty cash LO P2 33.33 points Kiona Co. set up a petty cash May the last month of the company's fiscal year). fund for payments of small amounts., The following transactions involving the petty cash fund occurred in May 1 Prepared a company check for $400 to establish the petty cash fund S Prepared a company check to replenish the fund for the following expenditures nade since May 1 a. Paid $124.80 for janitorial services b. Paid $101.88 for miscellaneous expenses. c. Paid postage expenses of $69.60 d. Paid $91.44 to The Count e. Counted $38.68 remaining in the petty cashbox. y Gazette (the local newspaper) for an advertisement References 16 Preparedyacashienyreport stratz 396 19 casaseenaen sunn theo nd. A company check ?s drawn to replenish the fund for the following expenditures sade since May 15 f. Paid postage expenses of $64.48. Reimbursed the office manager for business mileage, $51.33 h. Paid $53.08 to deliver merchandise to a custoner, terms FOB destination. 31 The company decides that the May 16 increase in the fund was too large- It reduces the fund by $se, leaving a total of $550. 1. Prepare jourmal entries to establish the fund on May 1 to reptenish it on May 15 and on May 31.and to refect any increase or decrease in the fund balance on May 16 and May 31 Round your answers to 2 decimal ploces /1 May 01 400.00Explanation / Answer
Date
General Journal
Debit
credit
May-01
Petty cash
400
cash
400
May-15
Janitorial expenses
124.8
Miscellaneous expense
101.88
Postage expense
69.6
Advertising expense
91.44
Cash over and short
18.47
Cash
369.32
$
Petty cash fund
$400
Remaining fund in cash box
-30.68
cash over short
$369.32
May-16
Petty cash
200
cash
200
May-31
Postage expense
64.48
Mileage expense
51.33
Delivery expense
53
Cash over and short (bal fig)
25
Cash (600-406.19)
193.81
May-31
Cash
50
Petty cash
50
Date
General Journal
Debit
credit
May-01
Petty cash
400
cash
400
May-15
Janitorial expenses
124.8
Miscellaneous expense
101.88
Postage expense
69.6
Advertising expense
91.44
Cash over and short
18.47
Cash
369.32
$
Petty cash fund
$400
Remaining fund in cash box
-30.68
cash over short
$369.32
May-16
Petty cash
200
cash
200
May-31
Postage expense
64.48
Mileage expense
51.33
Delivery expense
53
Cash over and short (bal fig)
25
Cash (600-406.19)
193.81
May-31
Cash
50
Petty cash
50