Question

GL0601 - Based on Problem 6-2A LO P2

King Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May.
  

May		1		Prepared a company check for $350 to establish the petty cash fund.
May		15		Prepared a company check to replenish the fund for the following expenditures made since May 1.
				a. Paid $119 for janitorial services.
				b. Paid $89 for miscellaneous expenses.
				c. Paid postage expenses of $59.
				d. Paid $30 to Facebook for advertising expense.
				e. Counted $64 remaining in the petty cash box.
May		16		Prepared a company check for $150 to increase the fund to $500.
May		31		The petty cashier reports that $200 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 $172.
				g. Reimbursed the office manager for business mileage, $86.
				h. Paid $28 to deliver merchandise 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 $120, leaving a total of $380.

GL0601 - Based on Problem 6-2A LO P2 King Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in E May. May 1 Prepared a company check for $350 to establish the petty cash fund. May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1. a. Paid $119 for janitorial services. b. Paid $89 for miscellaneous expenses. C. Paid postage expenses of $59. d. Paid $30 to Facebook for advertising expense. e. Counted $64 remaining in the petty cash box. May 16 Prepared a company check for $150 to increase the fund to $500. May 31 The petty cashier reports that $200 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 $172. 8. Reimbursed the office manager for business mileage, $86. h. Paid $28 to deliver merchandise 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 $120, leaving a total of $380. Requirement General Journal General Ledger Trial Balance Impact on Income Prepare the journal entries for each of the petty cash transactions. View transaction list Journal entry worksheet < 1 2 3 4 5 Prepared a company check for $350 to establish the petty cash fund. Note: Enter debits before credits. Account Title Debit Credit Date May 01 Record entry Clear entry View general journal Requirement General Ledger >

• Prepared a company check to replenish the fund for the following expenditures made since May 1: $119 for janitorial services; $89 for miscellaneous expenses; postage expenses of $59; and $30 to Facebook for advertising expense. Counted $64 remaining in the petty cash box.
• Prepared a company check for $150 to increase the fund to $500.
• The petty cashier reports that $200 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15: postage expenses of $172, reimbursed the office manager for business mileage, $86; and $28 to deliver merchandise to a customer, terms FOB destination.
• The company decides that the May 16 increase in the fund was too large. It reduces the fund by $120, leaving a total of $380.

Answer 1

Date	Account Title	Debit	Credit
May-01	Petty cash	350
	Cash		350
	(To record establishment of petty cash fund)
May-15	Janitorial expenses	119
	Miscellaneous expense	89
	Postage expense	59
	Advertising expense	30
	Cash short and over		11
	Cash		286
	(To record replenishment of petty cash fund)
May-16	Petty cash	150
	Cash		150
	(To record increase in petty cash fund balance)
May-31	Postage expense	172
	Mileage expense	86
	Delivery expense	28
	Cash short and over	14
	Cash		300
	(To record replenishment of petty cash fund)
May-31	Cash	120
	Petty Cash		120
	(To record decrease in petty cash fund balance)

Note: The general ledger account balances and trial balance should get automatically updated with the journal entries recorded.

Transaction	Impact transaction has on net income:	Amount of increase (decrease)
May 1)	No effect	0
May 15)	Decrease	-286
May 16)	No effect	0
May 31)	Decrease	-300
May 31)	No effect	0
In total, net income increased (decreased) by:		-586