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Kiona Company set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year). 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. May 15 a. Paid $109.20 for janitorial expenses. May 15 b. Paid \$89.15 for miscellaneous expenses. May 15 c. Paid postage expenses of $60.90. May 15 d. Paid \$80.01 to Facebook for advertising expense. May 15 e. Counted $26.84 remaining in the petty cashbox. May 16 Prepared a company check for $200 to increase the fund to $550. May 31 The petty cashier reports that $380.27 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15. May 31f. Paid postage expenses of $59.10. May 31g. Reimbursed the office manager for mileage expense, \$47.05. May 31 h. Paid $48.58 in delivery expense for products to a customer, terms F0B destination. May 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $500. Required: Prepare journal entries to establish the fund on May 1 , to replenish it on May 15 and on May 31 , and to reflect any increase or decrease in the fund balance on May 16 and May 31. (Round your answers to 2 decimal places.) Required information [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31 . a. On July 31 , the company's Cash account has a $25,111 debit balance, but its July bank statement shows a \$27,020 cash balance. b. Check Number 3031 for $1,330, Check Number 3065 for $441, and Check Number 3069 for $2,098 are outstanding checks as of July 31. c. Check Number 3056 for July rent expense was correctly written and drawn for $1,270 but was erroneously entered in the accounting records as $1,260. d. The July bank statement shows the bank collected $8,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. The bank statement shows an \$805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. f. The July statement shows a $13 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. g. Branch's July 31 daily cash receipts of $9,632 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement. 2. Prepare the journal entries necessary to make the company's book balance of cash equal to the reconciled cash balance as of July 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
