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 $101 for miscellaneous expenses.
C. Paid postage expenses of $68.
D. Paid $34 to The County Gazette (the local newspaper) for an
advertisement.
E. Counted $76 remaining in the petty cash box May 16 Prepared a
company check for $200 to increase the fund to $600.
May 31 The petty cashier reports that $240 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 $205.
G. Reimbursed the office manager for business mileage, $10.
H. Paid $34 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 $16, leaving a total of $440.

Answer 1

Answer:

May 1, petty fund is established

Dr Petty cash fund 550

    Cr Cash 550

May 15, petty cash expenditures are recorded

Dr Janitorial services expense 194

Dr Miscellaneous expenses 101

Dr Postage expenses 68

Dr Advertisement expenses 34

Dr Cash short and over 77

    Cr Petty cash fund 474

May 15, petty cash fund is replenished

Dr Petty cash fund 474

    Cr Cash 474

May 16 Prepared a  company check for $200 to increase the fund to $600.

Dr Petty cash fund 200

    Cr Cash 200

May 31, petty cash expenditures are recorded

Dr Postage expenses 205

Dr Delivery expenses 34

Dr Reimbursement of business mileage to office manager 10

Dr Cash short and over 45

    Cr Petty cash fund 294

May 31 The company decides that the May 16 increase in the fund was too large.  It reduces the fund by $16, leaving a total of $440.

Dr Cash 16

    Cr Petty cash fund 16