Allen 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 $118 for janitorial services. b. Paid $88 for miscellaneous expenses. c. Paid postage expenses of $59. d. Paid $29 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 $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.

1. Prepare the journal entries for each of the petty cash transactions.

2.Indicate the impact each transaction had on net income. Decreases to net income should be indicated with a minus sign.