Shawnee Co. set up a petty cash fund for payments of small accounts. The followi

Question

Shawnee Co. set up a petty cash fund for payments of small accounts. The following transactions involving the petty cash fund occured in May (the last month of the company's fiscal year).

May 1 prepared a company check for $250.00 to establish the petty cash fund.
15 Prepared a company check to replenish the fund for the following expenditures made since May 14
a. Paid $78.00 for janitorial services.
b. Paid $63.68 for miscellaneous expenses.
c. Paid postage expenses of $43.50.
d. Paid $75.15 to the county Gazette (the local newspaper) for an advertisement.
e. Counted $11.15 remaining for petty cash.

16 Prepared a company check for $200.00 to increase the fund to $450.00.
31 The petty cashier reports that $293.39 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 expense of $48.36.
g. Reimbursed the office manager for business mileage, $38.50
h. Paid $39.75 to deliver merchandise to a customer, term FOB destination
31 the company decided that the May 16 increase in the funds was too large. It increased the find by $50.00, leaving a total of $400.00



2) Explain how the company's financial statement are affected if the petty cash fund is not replenished and no entry is made on May 31.

Explanation / Answer

May 1 Prepared a company check for $300 to establish the petty cash fund. Dr Petty Cash 300 Cr Cash 300 15 Prepared a company check to replenish the fund for the following expenditures made since May 1 a. Paid $93.60 for janitorial services. b. Paid $76.41 for miscellaneous expenses. c. Paid postage expenses of $52.20. d. Paid $68.58 to The County Gazette (the local newspaper) for an advertisement. e. Counted $23.01 remaining in the petty cash box. Dr Janatorial Expense 93.60 Dr Miscellaneous Expense 76.41 Dr Postage Expense 52.20 Dr Advertising Expense 68.58 Cr Over/Short 13.80 Cr Cash 276.99 16 Prepared a company check for $200 to increase the fund to $500. Dr Petty Cash 200 Cr Cash 200 31 The petty cashier reports that $344.33 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 $53.73. g. Reimbursed the office manager for business mileage, $42.78. h. Paid $44.17 to deliver merchandise to a customer, terms FOB destination. Dr Postage Expense 53.73 Dr Mileage Expense 42.78 Dr Freight-Out 44.17 Dr Over/Short 14.99 Cr Cash 155.67 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 $450. Dr Cash 50 Cr Petty Cash 50

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.