AB Ltd has a petty cash account that is set at $8,400. In month 1 the month end replenishment is for 20% of the fund. In month 2 themonth end replenishment is for 25% of the fund and in month 3 the fund size is increased by $3,800 and the replenishment is for 22%of the fund level.Required: How much is the highest monthly expense from replenishment? $ AB Ltd. established a petty cash fund for $1,610. It replenishes the fund at the end of each month when financials are prepared orsooner if required. The company finds that it is replenishing the fund more than once a month so it decides to increase the fund sizeby 50%. At the time of this decision there are $715 in expense vouchers in the firm, so the firm replenishes and increases the fundsize in the same journal entry.Required: How much is the cheque written to complete this transaction? $

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume that the custodian of a $450 petty cash fund has $57.10 in coins and curency plus $387.00 in recipts at the end of the month. The entry to replenish the petty cash fund will include:?
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Sparks Corporation has a cash balance of $24,100 on April 1. The company must maintain a minimum cash balance of $6,500. During April, expected cash receipts are $49,000. Cash disbursements during the month are expected to total $68,500. Ignoring interest payments, during April the company will need to borrow:
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]Each month, $150 is available in petty cash funds for small office expenditures. Expenses paid from petty cash during the month are listed below. Postage $26.00 Office supplies $46.25 Delivery charge $ 9.50 Physician’s parking fee $12.00 What is the total for expenditures for the month from petty cash? Round your answer to the nearest cent and do not include the dollar sign ($) in your answer.
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AB Ltd.has a petty cash account that is set at $1,200. In month 1 the month end replenishment is for 20% of the fund. In month 2 the month end replenishment is for 25% of the fund and in month 3 the fund size is increased by $200 and the replenishment is for 22% of the fund level. Required: How much is the highest monthly expense from replenishment?
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