GL0801 - Based on Problem 8-2A Kiona Company LO P2

Kiona 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 $300.00 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 $88.00 for 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.
May		16		Prepared a company check for $200.00 to increase the fund to $500.00.
May		31		The petty cashier reports that $288.20 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 $147.36.
				g. Reimbursed the office manager for business mileage, $23.50.
				h. Paid $34.75 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 $100.00, leaving a total of $400.00.

1. Prepare the necessary journal entries.

2. Review the general ledger and trial balance tabs.

3. Calculate the impact each entry had on net income, if any.