Controlling petty cashJust Hangin’ Night Club maintains an imprest petty cash hind of $150, which is under the control of Sandra Morgan. On March 31, the fund holds $14 cash and petty cash tickets for office supplies, $128, and delivery expense, $15.RequirementsExplain how an imprest petty cash system works.Journalize the establishment of the petty cash fund on March 1 and the replenishing of the fund on March 31.Prepare a T-account for Petty Cash and post it to the account. What is the balance of the Petty Cash account at all times?

Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts like postage,…

Answered: Controlling petty cash Just Hangin’…

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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Controlling petty cash

Just Hangin’ Night Club maintains an imprest petty cash hind of $150, which is under the control of Sandra Morgan. On March 31, the fund holds $14 cash and petty cash tickets for office supplies, $128, and delivery expense, $15.

Requirements

Explain how an imprest petty cash system works.
Journalize the establishment of the petty cash fund on March 1 and the replenishing of the fund on March 31.
Prepare a T-account for Petty Cash and post it to the account. What is the balance of the Petty Cash account at all times?

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