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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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