Need help with Impact on Income.
Wright 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 $450 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 $150 for janitorial services. b. Paid $113 for miscellaneous expenses. c. Paid postage expenses of $75. d. Paid $38 to Facebook for advertising expense. e. Counted $88 remaining in the petty cash box. May 16 Prepared a company check for $150 to increase the fund to $600. May 31 The petty cashier reports that $240 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 $205. 9. Reimbursed the office manager for business mileage, 5103. h Paid $34 to deliver merchandise to a customer, terms FOB destination. May 31 The company decides that the May 16 Increase in the tund vas too large. It reduces the fund by $120, leaving a total of 3480. 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 View journal entry worksheet No Date Account Title Debit Credit 1 May 01 450 Petty cash Cash 450 2 May 15 150 113 75 Janitorial expenses Miscellaneous expenses Postage expenses Advertising expense Cash over and short Cash 38 14 362 3 May 16 150 Petty cash Cash 150 4 May 31 205 Postage expenses Mileage expense Delivery expense Cash over and short Cash 103 34 18 360 5 May 31 120 Cash Petty cash 120 Indicate the impact each transaction had on net income. Decreases to net income should be indicated with a minus sign. to: May 31 Impact transaction has on income: Dates: May 01 Amount of increaso (decrease) Transaction May 1) Prepared a company check for $450 to establish the petty cash fund. May 15) Prepared a company check to replenish the fund for the following expenditures made since May 1: $150 for janitorial services, $113 for miscellaneous expenses, postage expenses of $75, $38 to Facebook for advertising expense. Counted $88 remaining in the petty cash box May 16 Prepared a company check for $150 to increase the fund to $600. May 31 The petty cashier reports that $240 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 $205, business mileage, $103, $34 to deliver merchandise to a customer, terms FOB destination May 31 The company decides that the May 16 increase in the fund was too largo. It reduces the fund by $120, leaving a total of $480 In total, net income increased (decreased) by: $
