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Brown Co set up a petty cash fund for payments of small amounts. The following transactions...

Brown Co set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occ

Requirement Requirement General Journal General Ledger Trial Balance Impact on Income General Journal tab - Prepare the neces

Santana Rey receives the March bank statement for Business Solutions on April 11, 2020. The March 31 bank statement shows an

2. Prepare any necessary adjusting entries. Use Miscellaneous Expenses, for any bank charges. Use Interest Revenue, for any i

Brown 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 $114 for janitorial services. b. Paid $85 for miscellaneous expenses. c. Paid postage expenses of $57. d. Paid $28 to Facebook for advertising expense. e. Counted $74 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 $174. g. Reimbursed the office manager for business mileage, $87. h. Paid $29 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 Requirement General Journal General Ledger Trial Balance Impact on Income General Journal tab - Prepare the necessary journal entries, General Ledger and Trial balance tabs -Review the general ledger and trial balance tabs. Impact on Net Income tab - Calculate the impact each entry had on net income, if any.
Santana Rey receives the March bank statement for Business Solutions on April 11, 2020. The March 31 bank statement shows an ending cash balance of $66,766. The general ledger Cash account, No. 101, shows an ending cash balance per books of $67,182 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following a. The bank erroneously cleared a $430 check against the company account in March that S Rey did not issue. The check was actually issued by Business Systems. b. On March 25, the bank statement lists a $47 charge for the safety deposit box. Santana has not yet recorded this expense. c. On March 26, the bank statement lists a $119 charge for printed checks that Business Solutions ordered from the bank! Santana has not yet recorded this expense. d. On March 31, the bank statement lists $42 interest earned on Business Solutions's checking account for the month of March. Santana has not yet recorded this revenue. e. S. Rey notices that the check she issued for $138 on March 31, 2020, has not yet cleared the bank. f. S. Rey verifies that all deposits made in March do appear on the March bank statement. Required: 1. Prepare a bank reconciliation for Business Solutions for the month ended March 31, 2020.
2. Prepare any necessary adjusting entries. Use Miscellaneous Expenses, for any bank charges. Use Interest Revenue, for any interest earned on the checking account for March. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 Record journal entry related to the $430 check charged erroneously to Business Solutions' account, if required. Note: Enter debits before credits. Date General Journal Debit Credit
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Answer #1

Brown Co.

Date General Journal Debit Credit
May-01 Petty cash 350
Cash 350
(To record establishment of petty cash fund)
May-15 Janitorial expenses 114
Miscellaneous expense 85
Postage expense 57
Advertising expense 28
Cash short and over 8
Cash ($350 - $74) 276
(To record replenishement of petty cash fund)
May-16 Petty cash 150
Cash 150
(To record increase in petty cash fund balance)
May-31 Postage expense 174
Mileage expense 87
Delivery expense 29
Cash short and over 10
Cash ($500 - $200) 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 and trial balance tabs 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 -276
May 16) No effect 0
May 31) Decrease -300
May 31) No effect 0
In total, net income increased (decreased) by: -576

Per HOMEWORKLIB RULES the first question has been answered. Please post the remaining independent question separately. Thank you.

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