Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 6-2A Establishing, reimbursing, and adjusting petty cash LO P2 Kiona Co. set up a petty cash fund for payments of small amounts. The following

image text in transcribed

image text in transcribed

Problem 6-2A Establishing, reimbursing, and adjusting petty cash 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 (the last month of the company's fiscal year). May 1 Prepared a company check for $250 to establish the petty cash fund 15 Prepared a company check to replenish the fund for the following expenditures made since May 1 a. Paid $78.00 for janitorial services b. Paid $63.68 for miscellaneous expenses. c. Paid postage expenses of $43.50 d. Paid $57.15 to The County Gazette (the local newspaper) for an advertisement e. Counted $19.17 remaining in the petty cashbox. 16 Prepared a company check for $200 to increase the fund to $450 31 The petty cashier reports that $308.39 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 $48.36 g. Reimbursed the office manager for business mileage, $38.50 h. Paid $39.75 to deliver merchandise to a customer, terms FOB destination. 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 $400 Required 1. 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Cultures Anthropological Studies In Accountability Ethics And The Academy

Authors: Marilyn Strathern

1st Edition

0415233275, 978-0415233279

More Books

Students also viewed these Accounting questions