Question

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 $109 for janitorial services. b. Paid $82 for miscellaneous expenses. c. Paid postage expenses of $54. d. Paid $27 to The County Gazette (the local newspaper) for an advertisement. e. Counted $89 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.

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.

journal 1 entry:Prepared a company check for $350 to establish the petty cash fund.

journal 2 entry: Prepared a company check to replenish the fund for the following expenditures made since May 1: $109 for janitorial services; $82 for miscellaneous expenses; postage expenses of $54; and $27 to The County Gazette (the local newspaper) for an advertisement. Counted $89 remaining in the petty cash box.

journal 3 entry: Prepared a company check for $150 to increase the fund to $500.

journal 4 entry : 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.

journal entry 5: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

In the books of .....:

Date	General Journal	Debit	Credit
		$	$
May 1	Petty Cash	350
	Cash		350
May 15	Janitorial Expense	109
	Miscellaneous Expense	82
	Postage Expense	54
	Advertising Expense	27
	Cash Short and Over		11
	Cash		261
May 16	Petty Cash	150
	Cash		150
May 31	Postage Expense	172
	Mileage Expense	86
	Freight - out	28
	Cash Short and Over	14
	Cash		300
May 31	Cash	120
	Petty Cash		120

Impact on Net Income:

Journal entry #	Impact on Net Income
1.	None
2.	Net Decrease by $ 261.
3.	None
4.	Net Decrease by $ 300
5.	None