Answer:
Kiona Co.
Journal Entries:
May 1:
Debit Petty Cash Fund $300
Credit Cash Account $300
To record the establishment of the petty cash fund.
May 15:
Debit Janitorial Services $93.60
Debit Miscellaneous Expenses $76.41
Debit Office Supplies $52.20
Debit Advertisement $68.58
Credit Petty Cash Fund $290.79
May 15:
Debit Petty Cash Fund $290.79
Credit Cash Account $290.79
To record the replenishment of the fund.
Debit Cash Account $13.80
Credit Surplus Cash $13.80
To record the excess cash counted.
May 16:
Debit Petty Cash Fund $200
Credit Cash Account $200
To record the increase of the fund to $500.
May 31:
Debit Office Stationery $53.73
Debit Transport $42.78
Debit Delivery Expense $44.17
Credit Petty Cash Fund $140.68
May 31:
Debit Petty Cash Fund $140.68
Credit Cash Account $140.68
To replenish the petty cash fund.
Debit Cash Account $50
Credit Petty Cash Fund $50
To record the reduction of the petty cash fund by $50.
Explanation:
A Petty Cash Fund is a system for meeting small-ticket expenses, by the use of the float system. This implies that the petty cashier is only reimbursed for actual expenditure in order to restore the float to the established amount.
