GL0601 - Based on Problem 6-2A LO P2 Lewis 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 $110 for janitorial services. b. Paid $83 for miscellaneous expenses. c. Paid postage expenses of $55. d. Paid $27 to Facebook for advertising expense. 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 $169. 8. Reimbursed the office manager for business mileage, $85. 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. Requirement General Journal General Ledger Trial Balance Impact on Income 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. View transaction list Journal entry worksheet 1 2 3 4 5 Prepared a company check for $350 to establish the petty cash fund. Note: Enter debits before credits. Account Title Debit Credit Date May 01 Record entry Clear entry View general journal See how your entries updated the account balances. Dates: May 01 to: May 31 General Ledger Account Cash Inventory Debit No. Date Debit Credit No. Date Credit Balance 6,560 Balance 4.900 Apr 30 Apr 30 Lewis, Capital Service revenue No. Date Debit Credit No. Date Debit Credit Balance 2,700 Balance 15.000 Apr 30 Apr 30 Janitorial expenses Debit Credit Insurance expense Debit Credit No. No. Date Apr 30 Balance 450 Date Apr 30 Balance 1,620 Rent expense Postage expenses Debit Credit No. Date Debit Credit No. Balance 2.640 Date Apr 30 Balance 150 Apr 30 Miscellaneous expenses Debit Credit Mileage expense Debit Credit No. No. Date Balance Date Apr 30 Balance 700 Apr 30 Advertising expense Delivery expense Debit Credit No. Debit Credit No. Date Apr 30 Balance 420 Date Apr 30 Balance 190 Requirement General Journal General Ledger Trial Balance Impact on Income See how your entries updated the trial balance. Dates: May 01 to: May 31 Lewis Company Trial Balance May 31, 2019 Account Title Debit Credit $ 6.560 4,900 2.700 15,000 450 Cash Inventory Lewis, Capital Service revenue Janitorial expenses Insurance expense Rent expense Postage expenses Miscellaneous expenses Mileage expense Advertising expense Delivery expense Total 1.620 2,640 150 700 70 420 190 $ 17,700 $ 17,700 Requirement General Journal General Ledger Trial Balance Impact on Income Indicate the impact each transaction had on net income. Decreases to net income should be indicated with a minus sign. to: May 31 Dates: May 01 Amount of increase Impact transaction has on income: (decrease) Transaction 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: $110 for janitorial services, $83 for miscellaneous expenses, postage expenses of $55, $27 to Facebook for advertising expense. 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: postage expenses of $169, business mileage, $85, $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. In total, net income increased (decreased) by: