prepare the journal entries and state the impact each transaction had on net income

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 1PB: On June 1 French company has decided to initiate a petty cash fund in the amount of $800. Prepare...
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prepare the journal entries and state the impact each transaction had on net income
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
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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