Kiona Company 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).
Kiona Company 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).
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 2PB: On July 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare...
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Kiona Company 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 $400 to establish the petty cash fund. |
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May 15 | Prepared a company check to replenish the fund for the following expenditures made since May 1. |
May 15 | a. Paid $124.80 for janitorial expenses. |
May 15 | b. Paid $101.88 for miscellaneous expenses. |
May 15 | c. Paid postage expenses of $69.60. |
May 15 | d. Paid $91.44 to Facebook for advertising expense. |
May 15 | e. Counted $30.68 remaining in the petty cashbox. |
May 16 | Prepared a company check for $200 to increase the fund to $600. |
May 31 | The petty cashier reports that $401.19 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 $64.48. |
May 31 | g. Reimbursed the office manager for mileage expense, $51.33. |
May 31 | h. Paid $53.00 in delivery expense for products 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 $50, leaving a total of $550. |
Required:
Prepare
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