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).
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).
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...
Related questions
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
Knowledge Booster
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.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,