Mitchell Co. set up a petty cash fund for payments of small amounts. The following transactions involving
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Question:
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. |
Journal entry worksheet
- Prepared a company check for $550 to establish the petty cash fund.
Note: Enter debits before credits.
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- general entry
- general ledger
- trial balance
- impact on income
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