Question

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

May 1 Prepared a company check for $300 to establish the petty cash fund.

15 Prepared a company check to replenish the fund for the following expenditures made since

May 1.

a. Paid $93.60 for janitorial expenses.

b. Paid $76.41 for miscellaneous expenses.

c. Paid postage expenses of $52.20.

d. Paid $68.58 to Facebook for advertising expense.

e. Counted $23.01 remaining in the petty cashbox.

16 Prepared a company check for $200 to increase the fund to $500.

31 The petty cashier reports that $334.32 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 mileage expense, $42.78.

h. Paid $44.17 in delivery expense for products to a customer, terms FOB destination.

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.

Answer 1

DATE	ACCOUNT TITLE	DEBIT	CREDIT
May 1	Petty cash	300
	cash		300
May 15	janitorial expenses	93.6
	miscellaneous expenses	76.41
	postage expenses	52.2
	advertising expense	68.58
	Cash over and short		13.8
	cash [300-23.01]		276.99
May 16	Petty cash	200
	cash		200
May 31	postage expense	53.73
	Mileage expense	42.78
	Delivery expense	44.17
	cash over and short	25
	cash (500-334.32)		165.68
May 31	Cash	50
	Petty cash		50