Chapter 8 Cash and Cash Controls Required I. Prepare the journal entry to establish the petty cash fund. 1. a petty cash payments report for February with these categories: delivery expense, mileage expense, ostage expense, supplies expense. Sort the payments the appropriate cate- and total the expenditures in each category. Prepare the journal entries for part 2 to both (a reimburse and increase the fund amount. Check Cr. Cash $233.9 Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involv- Problem 8-3A ing the petty cash fund occurred in May (the last month of the company's fiscal year). Establish, reimburse, and adjust May 1 Prepared a company check for $300 to establish the petty petty cash LO4 cash fund. 15 Prepared a company check to the fund for the following expenditures made since May $88 janitorial services b. Paid $53.68 for miscellaneous expenses c. Paid postage expenses of $53.50. d. Paid $47.15 to The County Gazette (the local newspaper) for an advertisement. e. Counted $62.15 remaining in the petty cash box. 16 Prepared a company check for $200 to increase the fund to $500 31 The petty cashier reports that S288.20 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15 f expenses of $147.36. g. Reimbursed the office manager for business mileage, S23.50. h. Paid $34.75 to deliver merchandise to a customer reduces the fund 31 The company decides that the May 16 increase in the fund was too large. It by $100, leaving a total of $400. Required replenish it on May 15 and on May 31, Check o) to Cash May 15. i. Prepare journal entries to establish the on May 1, to cr $200 and to reflect any increase or decrease fund May 16 and May $23785; May 16, in the fund balance on Analysis component the petty cash fund is not replenished 2. Explain how the company's financial statements are affected if nd no entry is made on May 31 ilihlf reconcile Branch Company's book balance of cash with its Problem 8 Prepare a bank reconciliation and L07