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Dylan Co. set up a petty cash fund for payments of smallamounts. the following t

ID: 2445209 • Letter: D

Question

Dylan Co. set up a petty cash fund for payments of smallamounts. the following transactions involving the petty cash fund occurred in May (the last month of thecompany's fiscal year). May 1 Prepared a company check for $350 toestablish the petty cash fund.           15Prepared a company check to replenish the fund for the followingexpenditures made since               May 1.                        a. Paid $109.20 for janitorial services.                        b. Paid $89.15 for miscellaneous expense                        c. Paid postage expense of $60.90                        d. Paid $80.01 to The County Gazette (the local newspaper)for an adversitment.                        e. Counted $16.84 remaining in the petty cash box.           16 Prepaired a company check for $200 to increase the fund to$550.          31 The petty cashier reports that $390.27 cash remains in thefund. A company check is                drawn to replenish the fund for the following expenditures madesince May 15.                         f. Paid postage expense of $59.10                         g. Reimbursed the office manager for business mileage, $47.05                         h. Paid $48.58 to deliver merchandise to a customer, terms FOBdestination.          31  The company decides that the May 16 increase in thefund was too large. It reduces the                fund by $50, leaving a total of $500.           >>Prepare jorunal entries to establish the funds on May 1, toreplenish it on May 15 and on               May 31, and to reflect any increase or decrease in the fund balanceon May 16 and on               May 31. Dylan Co. set up a petty cash fund for payments of smallamounts. the following transactions involving the petty cash fund occurred in May (the last month of thecompany's fiscal year). May 1 Prepared a company check for $350 toestablish the petty cash fund.           15Prepared a company check to replenish the fund for the followingexpenditures made since               May 1.                        a. Paid $109.20 for janitorial services.                        b. Paid $89.15 for miscellaneous expense                        c. Paid postage expense of $60.90                        d. Paid $80.01 to The County Gazette (the local newspaper)for an adversitment.                        e. Counted $16.84 remaining in the petty cash box.           16 Prepaired a company check for $200 to increase the fund to$550.          31 The petty cashier reports that $390.27 cash remains in thefund. A company check is                drawn to replenish the fund for the following expenditures madesince May 15.                         f. Paid postage expense of $59.10                         g. Reimbursed the office manager for business mileage, $47.05                         h. Paid $48.58 to deliver merchandise to a customer, terms FOBdestination.          31  The company decides that the May 16 increase in thefund was too large. It reduces the                fund by $50, leaving a total of $500.           >>Prepare jorunal entries to establish the funds on May 1, toreplenish it on May 15 and on               May 31, and to reflect any increase or decrease in the fund balanceon May 16 and on               May 31.

Explanation / Answer

1-May

15-May

28-Feb

31-May

31-May

Toestablish a $350 petty cash fund.

1-May

Petty cash $350.00         Cash $350.00 To record expenses andreplenish the petty cash fund.

15-May

Services expense $109.20 Miscellaneous expense $89.15 Postage expense $60.90 Advertisement expense $80.01           Cash overand short $6.10           Cash $350.00 To Increase the fundby $200 to a total of $550

28-Feb

Petty cash $200.00        Cash $200.00 To record expenses andreplenish the petty cash fund.

31-May

Postage expense $59.10 Mileage expense $47.05 Delivery charges $48.58 Cash over and short $5.00        Cash $550 To reduce the fund by$50 to a total of $500

31-May

Cash $50.00       Petty cash $50.00