Mitchell 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 $550 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 $194 for janitorial services. b. Paid $145 for miscellaneous expenses. c. Paid postage expenses of $97. d. Paid $48 to The County Gazette (the local newspaper) for an advertisement. e. Counted $77 remaining in the petty cash box. May 16 Prepared a company check for $250 to increase the fund to $800. May 31 The petty cashier reports that $320 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 $280. g. Reimbursed the office manager for business mileage, $140. h. Paid $46 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 $200, leaving a total of $600. Prepare general journal (prepare the necessary journal entries), general ledger (review the general ledger and trial balance tabs), trial balance and impact on income (calculate the impact each entry had on net income, if any).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Mitchell 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 $550 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 $194 for janitorial services.
		b. Paid $145 for miscellaneous expenses.
		c. Paid postage expenses of $97.
		d. Paid $48 to The County Gazette (the local newspaper) for an advertisement.
		e. Counted $77 remaining in the petty cash box.
May	16	Prepared a company check for $250 to increase the fund to $800.
May	31	The petty cashier reports that $320 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 $280.
		g. Reimbursed the office manager for business mileage, $140.
		h. Paid $46 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 $200, leaving a total of $600.

Prepare general journal (prepare the necessary journal entries), general ledger (review the general ledger and trial balance tabs), trial balance and impact on income (calculate the impact each entry had on net income, if any).

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 6 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Cash and cash equivalents

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions