70.2K

Verified Solution

Link Copied!

Perry Co set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in . Ray 1 Prepared a company check for $400 to establish the petty cash fund. May 15 Prepared company check to replenish the fund for the following expenditures made since May 1. # Paid $135 for janitorial services. b. Paid $101 for miscellaneous expenses. . Paid postage expenses of $68. d. Pald 534 to Facebook for advertising expenses .. 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 to drawn to replenish the fund for the following expenditures made since May 15. f. Paid postage expenses of $205. 2. Reimbursed the office manager for business mileage, $103. h. Paid $34 to deliver merchandise to a customer, terns FOB destination May 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $160, leaving a total of $440. Impact transaction has on income: Amount of increase (decrease) 0 $ Net income was unchanged Transaction May 1) Prepared a company check for $400 to establish the petty cash fund May 15) Prepared a company check to replenish the fund for the following expenditures made since May 1: $135 for janitorial services, $101 for miscellaneous expenses postage expenses of $68, $34 to Facebook for advertising expense Counted $76 remaining in the petty cash box May 16 Prepared a company check for $200 to increase the fund to $600 Net income decreased by > 414 X 0 Net income was unchanged > > 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 postage expenses of $205, business mileage, S103 $34 to deliver merchandise to a customer, terms FOB destination Net income decreased by > 342 X May 31 The company decides that the May 16 increase in the fund was too large It reduces the fund by $160, leaving a total of $440 0 Net income was unchanged In total, net income increased (decreased) by: 756

Answer & Explanation Solved by verified expert

See Answer