Question

I figured out the first half and how to solve it. However, I can not seem to figure out the second half. Could you please help me? If you could solve the whole equation showing me the equation that you are using, that would be great!

Thank you so, so much in advance!

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). 

1. May 1 Prepared a company check for $450 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 $140.40 for janitorial expenses.

   b. Paid $114.62 for miscellaneous expenses.

   c. Paid postage expenses of $78.30.

   d. Paid $102.87 to Facebook for advertising expense.

   e. Counted $34.51 remaining in the petty cashbox. 16 Prepared a company check for $200 to increase the fund to $650. 31 The petty cashier reports that $447.13 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 $69.85.

   g. Reimbursed the office manager for mileage expense, $55.61.

   h. Paid $57.41 in delivery expense for products to a customer, terms FOB destination.

2. 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 $600. 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.)

Once again, thank you! For some reason the demonstrated equation was not included for this question! Thank you sir/ma'am!

Have a wonderful day!

Answer 1

Solution:
Journal Entries:

Date	Particulars	Debit ($)	Credit ($)
May 1	Petty cash	$450
	Cash		$450
	(To establish the party cash fund)
May 15	Janitorial expenses	$140.40
	Miscellaneous expenses	$114.62
	Postage expenses	$78.30
	Advertising expenses	$102.87
	Cash(450 - 34.51 )		$415.49
	Cash over & short (Total of postage exp, jani exp, mis exp, pos exp, adv exp, - cash) (436.19 - 415.49)		$20.7
	(To reimburse the party cash fund)
May 16	Petty cash	$200
	Cash		$200
	(To increase the petty cash fund to $650)
May 31	Postage expenses	$69.85
	Mileage expenses	$55.61
	Delivery expenses	$57.41
	Cash (600 - 447.13)		$152.87
	Cash Over and Short (Total of postage exp, mil exp, del exp, - cash) (182.87 - 152.87 )		$30
	(To reimburse the petty cash fund)
May 31	Cash	$50
	Petty cash		$50
	(To decrease the petty cash fund to $600 )