GLO801 - 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 $98.00 for Janitorial services. b. Paid $53.69 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. 1. 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. 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 negative values. Dates: May 01 to: May 31 - Impact transaction has on Amount of increase 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 negative values. to: May 31 - Impact transaction has on income: Transaction May 1) Prepared a company check for $300 to establish the petty cash fund. Dates: May 01 Amount of increase (decrease) IS Net income was unchanged May 15) Prepared a company check to replenish the fund for the following expenditures made since May 1: $68 for janitorial services, $53.68 for miscellaneous expenses, postage expenses of $53.50, $47.15 for an advertisement. Counted $62.15 remaining in the petty cash box. May 16 Prepared a company check for $200 to increase the fund to $500 Net income was unchanged 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. postage expenses of $147.36, business mileage, $23.50, $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 Net income was unchanged fund by $100, leaving a total of $400. In total, net income increased (decreased) by: $ 0.00 ( Trial Balance Impact on income
