Question

Walker 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 $120 for janitorial services. b. Paid $90 for miscellaneous expenses. c. Paid postage expenses of $60. d. Paid $3e 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 $169. 8. Reimbursed the office manager for business mileage, $85. h. Paid $28 to deliver merchandise to a customer, terns 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.

GENERAL GOURNAL

IMPACT ON INCOME

Answer 1

Walker Company
General Journal
Date	Particulars	Debit	Credit
1-May	Petty Cash	350
	Cash		350
15-May	Petty cash
	Cash
15-May	Janitorial services	120
	misc expenses	90
	postage expenses	60
	Advertising expense	30
	Petty cash		300
16-May	Petty cash	150
	Cash		150
31-May	Petty cash	282
	Cash		282
	Postage expenses	169
	Mileage	85
	Delivery expenses	28
	Petty cash		282
31-May	Cash	120
	Petty cash		120

IMPACT ON INCOME
Transaction	Impact	Amount
May 1( prepared cheque of $350)	None	0
May 15 (expenses)	Decrease	300	(120+90+60+30)
May 16 (prepared company cheque of $150)	None	0
May 31 (expenses)	Decrease	282	(169+85+28)
May31 (reduce the fund)	None	0