Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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prepare the journal entries and state the impact each transaction had on net income
Transcribed Image Text:Perez 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 $500 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 $180 for janitorial services.
May 15 b. Paid $135 for miscellaneous expenses.
May 15 c. Paid postage expenses of $90.
May 15 d. Paid $44 to Facebook for advertising expense.
May 15 e. Counted $65 remaining in the petty cash box..
May 16 Prepared a company check for $200 to increase the fund to $700.
May 31 The petty cashier reports that $280 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 $241.
May 31 g. Reimbursed the office manager for business mileage, $121.
May 31 h. Paid $40 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 $160,
leaving a total of $540.
General
Journal
General
Ledger
Prepare the journal entries for each of the petty cash transactions.
Requirement
View transaction list
Impact on
Income
Trial Balance
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