GL0601 - Based on Problem 6-2A LO P2

Mitchell Co. 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 $550 to establish the petty cash fund.
May		15		Prepared a company check to replenish the fund for the following expenditures made since May 1.
				a. Paid $194 for janitorial services.
				b. Paid $145 for miscellaneous expenses.
				c. Paid postage expenses of $97.
				d. Paid $48 to Facebook for advertising expense.
				e. Counted $77 remaining in the petty cash box.
May		16		Prepared a company check for $250 to increase the fund to $800.
May		31		The petty cashier reports that $320 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 $280.
				g. Reimbursed the office manager for business mileage, $140.
				h. Paid $46 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 $200, leaving a total of $600.

• Requirement
• General Journal
• General Ledger
• Trial Balance
• Impact on Income

Indicate the impact each transaction had on net income. Decreases to net income should be indicated with a minus sign.

Dates:

May 01

to:

May 31

Transaction	Impact transaction has on income:	Amount of increase (decrease)
May 1) Prepared a company check for $550 to establish the petty cash fund.
May 15) Prepared a company check to replenish the fund for the following expenditures made since May 1: $194 for janitorial services, $145 for miscellaneous expenses, postage expenses of $97, $48 to Facebook for advertising expense. Counted $77 remaining in the petty cash box.
May 16 Prepared a company check for $250 to increase the fund to $800.
May 31 The petty cashier reports that $320 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15: postage expenses of $280, business mileage, $140, $46 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 $200, leaving a total of $600.
In total, net income increased (decreased) by:		$0