GL0601 - Based on Problem 6-2A LO P2

Martin 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 $350 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 $109 for janitorial services. b. Paid $82 for miscellaneous expenses. c. Paid postage expenses of $54. d. Paid $27 to Facebook for advertising expense. e. Counted $89 remaining in the petty cash box.May 16 Prepared a company check for $150 to increase the fund to $500.May 31 The petty cashier reports that $200 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 $172. g. Reimbursed the office manager for business mileage, $86. h. Paid $28 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 $120, leaving a total of $380.

General Journal tab - Prepare the necessary journal entries.

General Ledger and Trial balance tabs -Review the general ledger and trial balance tabs.

Impact on Net Income tab - Calculate the impact each entry had on net income, if any.

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