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 $88 for janitorial services. b. Paid $53.68 for miscellaneous expenses. c. Paid postage expenses of $53.50. d. Paid $47.15 to The County Gazette (the local newspaper) for an advertisement. e. Counted $62.15 remaining in the petty cashbox. 16 Prepared a company check for $200 to increase the fund to $500. 31 The petty cashier reports that $288.20 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 $147.36. g. Reimbursed the office manager for business mileage, $23.50. h. Paid $34.75 to deliver merchandise 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 $100, leaving a total of $400.

Answer 1

Answer:

Explanation:

Answer 2

Answer:

The petty cash balance is prepared as follows:

Explanation:

                   The Petty Cash Book for Kiona Co.

Date           Purchase                                  Amount($)     Balance ($)

                   Check                                                300                 300

                   Janitorial services                               88                  212

                   Miscellaneous expenses                    53.68             158.32

                   Postage expenses                               53.5               104.82

                   Country Gazette                                   47.15                57.57

                   Balance as counted                               -                     62.15

                   Company check                                  200                 262.15

                   Balance as reported                              -                     288.20

                   Postage expenses                               147.36              140.84          

                   Reimbursement                                      23.5               117.34

                   Deliveries                                                34.75               82.59

                   Balance at month-end                             -                      82.59

                   Balance for June 1st                                 -                    400

                   Float for June                                            -                    482.59