Indicate the impact each transaction had on net income.Prepare the journal entries for each of the petty cash transactions.This is a 2 part question. Clark Company 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. May 15 a. Paid $160 for janitorial services. May 15 b. Paid $120 for miscellaneous expenses. May 15 c. Paid postage expenses of $80. May 15 d. Paid $ 41 to Facebook for advertising expense. May 15 e. Counted $63 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. May 31 f. Paid postage expenses of $205. May 31 g. Reimbursed the office manager for business mileage, $103. May 31 h. Paid $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 large. It reduces the fund by $120, leaving a total ofCheck my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completior Indicate the impact each transaction had on net income. Note: Decreases to net income should be indicated with a minus sign. other favorites Ch 06 GL P6-2a i Check my work Mcc >
Indicate the impact each transaction had on net income.Prepare the journal entries for each of the petty cash transactions.This is a 2 part question. Clark Company 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. May 15 a. Paid $160 for janitorial services. May 15 b. Paid $120 for miscellaneous expenses. May 15 c. Paid postage expenses of $80. May 15 d. Paid $ 41 to Facebook for advertising expense. May 15 e. Counted $63 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. May 31 f. Paid postage expenses of $205. May 31 g. Reimbursed the office manager for business mileage, $103. May 31 h. Paid $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 large. It reduces the fund by $120, leaving a total ofCheck my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completior Indicate the impact each transaction had on net income. Note: Decreases to net income should be indicated with a minus sign. other favorites Ch 06 GL P6-2a i Check my work Mcc >
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 2PA: On May 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare...
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Question
Transcribed Image Text:Indicate the impact each transaction had on net income.Prepare the journal entries for each of the petty
cash transactions.This is a 2 part question. Clark Company 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. May 15 a. Paid $160 for janitorial services. May
15 b. Paid $120 for miscellaneous expenses. May 15 c. Paid postage expenses of $80. May 15 d. Paid $
41 to Facebook for advertising expense. May 15 e. Counted $63 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. May 31 f. Paid postage expenses of $205. May 31 g. Reimbursed the
office manager for business mileage, $103. May 31 h. Paid $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 large. It
reduces the fund by $120, leaving a total ofCheck my work mode: This shows what is correct or incorrect
for the work you have completed so far. It does not indicate completior Indicate the impact each
transaction had on net income. Note: Decreases to net income should be indicated with a minus sign.
other favorites Ch 06 GL P6-2a i Check my work Mcc >
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