Question

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 $250 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 $78.00 for janitorial expenses.
				b. Paid $63.68 for miscellaneous expenses.
				c. Paid postage expenses of $43.50.
				d. Paid $57.15 to Facebook for advertising expense.
				e. Counted $19.17 remaining in the petty cashbox.
		16		Prepared a company check for $200 to increase the fund to $450.
		31		The petty cashier reports that $303.39 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 $48.36.
				g. Reimbursed the office manager for mileage expense, $38.50.
				h. Paid $39.75 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 $400.

Answer 1

Date	General journal				Debit	Credit
1-May	Petty cash				250
	cash					250
15-May	Janitorial services				78
	Miscellaneous expense				63.68
	postage expense				43.5
	Advertising expense				57.15
	cash over and short					11.5
	cash.					230.83
16-May	Petty cash				200
	cash					200
31-May	postage expense				48.36
	Mileage expense				38.5
	Delivery expense				39.75
	cash over and short				20
	cash.					146.61
31-May	cash				50
	petty cash					50