1 References Perez Company 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 $500 to establish the petty cash fund. May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1. May 15 a. Paid $180 for janitorial services. May 15 b. Paid $135 for miscellaneous expenses. May 15 c. Paid postage expenses of $90. May 15 d. Paid $44 to Facebook for advertising expense. May 15 e. Counted $65 remaining in the petty cash box. May 16 Prepared a company check for $200 to increase the fund to $700. May 31 The petty cashier reports that $280 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15. May 31 f. Paid postage expenses of $241. May 31 g. Reimbursed the office manager for business mileage, $121. May 31 h. Paid $40 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 $160, leaving a total of $540. Requirement General Journal General Ledger Trial Balance Impact on Income Indicate the impact each transaction had on net income. Note: ecreases to net income should be indicated with a minus sign. Transaction May 1) Prepared a company check for $500 to establish the petty cash fund. May 15) Prepared a company check to replenish the fund for the following expenditures made since May 1: $180 for janitorial services, $135 for miscellaneous expenses, postage expenses of $90, $44 to Facebook for advertising expense. Counted $65 remaining in the petty cash box. May 16 Prepared a company check for $200 to increase the fund to $700. May 31 The petty cashier reports that $280 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 $241, business mileage, $121, $40 to deliver merchandise to a customer, terms FOB destination. Impact transaction has on income: Net income was unchanged Net income decreased by: Net income was unchanged Net income decreased by: Dates: May 01 Amount of increase (decrease) May 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $160, leaving a total of $540. Net income was unchanged In total, net income increased (decreased) by: $ (242) to: April 30 View previous attempt