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). Prepare the entries. May 1: Prepared a company check for $300 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 $93.60 for janitorial services.
b. Paid $76.41 for miscellaneous expenses.
c. Paid postage expenses of $52.20.
d. Paid $68.58 to The County Gazette (the local newspaper) for an advertisement.
e. Counted $23.01 remaining in the petty cash box.
May 16: Prepared a company check for $200 to increase the fund to $500.
May 31: The petty cashier reports that $339.32 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 $53.73
g. Reimbursed the office manager for business mileage, $42.78.
h. Paid $44.17 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 $50, leaving a total of $450.

If 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). The appropriate journal entries are:

Kiona Co. Journal entries

May 1

Debit Petty cash$300  

Credit Cash  $300

May 15

Debit Janitorial services$93.60

Debit Miscellaneous expenses$76.41

Debit Postage expenses$52.20  

Debit Advertising expenses$68.58

Credit Cash $276.99

($300 - $23.01)

Credit Cash over and short$13.80

[($93.60+$76.41+$52.20+$68.58)-$276.99]

May 16

Debit Petty cash $200  

Credit Cash  $200

May 31

Debit Postage expenses $53.73  

Debit Mileage expenses$42.78

Debit Delivery expenses$44.17  

Debit Cash over and short $20

[$160.68-($53.73+$42.78+$44.17)]  

Credit Cash $160.68

($500-$339.32)

May 31

Debit Cash$50  

Credit Petty cash$50

Learn more here:

link

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.

explanation:

jejdndnsbd