GL0601 - Based on Problem 6-2A LO P2 Clark 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 $450 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 $160 for janitorial services. b. Paid $120 for miscellaneous expenses. c. Paid postage expenses of $80. d. Paid $41 to The County Gazette (the local newspaper) for an advertisement. e. Counted $63 remaining in the petty cash box. May 16 Prepared a company check for $150 to increase the fund to $600. May 31 The petty cashier reports that $240 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 $205. g. Reimbursed the office manager for business mileage, $103. h. Paid $34 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 $480. Requirement General Journal General Ledger Trial Balance Impact on income Prepare the journal entries for each of the petty cash transactions. No Account Title Credit Date May 01 Debit 450 Petty cash Cash 450 May 15 Janitorial expenses Miscellaneous expenses Postage expenses Advertising expense 160 120 80 41 May 16 150 Petty cash Cash 150 May 31 Postage expenses Mileage expense Delivery expense Cash over and short 205 103 34 May 31 120 Cash Petty cash 120 Requirement General Journal General Ledger Trial Balance Impact on income Indicate the impact each transaction had on net income. Enter decreases to net income as negati Dates: May 01 Transaction Impact transaction has on income: Amount of increase (decrease) May 1) Prepared a company check for $450 to establish the petty cash fund. Net income was unchanged May 15) Prepared a company check to replenish the fund for the following expenditures made since May 1: $160 for janitorial services, $120 for Net income decreased by: miscellaneous expenses, postage expenses of $80, $41 for an advertisement. Counted $63 remaining in the petty cash box. May 16 Prepared a company check for $150 to increase the fund to $600. Net income was unchanged May 31 The petty cashier reports that $240 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures Net income decreased by: made since May 15: postage expenses of $205, business mileage, $103, $34 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 $480. Net income was unchanged In total, net income increased (decreased) by: $