Joseph Kiuvik is reviewing the cash accounting for Martinez Corp., a local mailing service. Joseph's review will focus on the petty cash account and the bank reconciliation for the month ended May 31, 2020.

Joseph has collected the following information from Martinez's bookkeeper:

1.The petty cash fund was established on May 10, 2020, in the amount of $400.2.Expenditures from the fund as at May 31, 2020 were supported by approved receipts for the following:

Postage expense$61Envelopes and other supplies24In-house business lunch provided to customers

99.00Donation to local charity (Office Expense)36Shipping charges, for goods to customers47.50Newspaper advertising21.10Taxi for sales manager to attend meeting downtown (Miscellaneous Expense)

17.60Freight paid on incoming purchases36.60

3.On May 31, 2020, the petty cash fund was replenished and increased to $520; currency and coin in the fund at that time totalled $47.60.

Martinez's bookkeeper also provided the following summary bank statement and general ledger information:

SCOTIA IMPERIAL BANK

Bank StatementDisbursementsReceiptsBalanceBalance, May 1, 2020$9,029Deposits$28,800Note payment, direct from

customer (interest of $40)950Cheques cleared during May$31,700Bank service charges47Balance, May 31, 2020$7,032

Martinez's general ledger Cash account had a balance of $9,400 on May 1. During the month, the company deposited $31,600 in the bank and wrote cheques in payment of accounts payable and the payroll for $32,200. Deposits in transit at the end of the month are determined to be $3,000, cash (from cash sales) still on hand with the company cashier is $251 (besides petty cash), and cheques outstanding at May 31 total $580. Martinez uses a periodic inventory system.

Prepare the journal entries to record the transactions related to the petty cash fund for May. Martinez uses a periodic inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 2 decimal places, e.g. 52.75.)

No.

Date

Account Titles and Explanation

Debit

Credit

1.

2.

bank reconciliation dated May 31, 2020, proceeding to a correct balance. (List items that increase balance as per bank & books first.)

Martinez Corp.

Bank Reconciliation

$

:

:

$

$

:

:

$

Prepare the journal entries to make the books correct and complete. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

(To record note payment)

(To record bank service charges)

What amount of cash should be reported in the May 31, 2020 statement of financial position?

Cash$