Petty cash fund : Petty cash fund is a fund established to pay insignificant amounts like postage, office supplies, and lunches. In day-to-day life, it becomes difficult to use checks for daily expenses. Therefore, companies maintain some minimum amount of funds in the hand for such daily expenses. These funds are called as petty cash funds. These funds are managed by custodian. This system is otherwise called as imprest system. To prepare : A journal entry to create the petty cash fund.

Question

Want to see the full answer?

Answer 1

Question

Chapter 7, Problem 7.16E

Requirement 1:

To determine

Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts like postage, office supplies, and lunches. In day-to-day life, it becomes difficult to use checks for daily expenses. Therefore, companies maintain some minimum amount of funds in the hand for such daily expenses. These funds are called as petty cash funds. These funds are managed by custodian. This system is otherwise called as imprest system.

To prepare: A journal entry to create the petty cash fund.

Requirement 2:

To determine

To prepare: Journal entry to record petty cash fund replenishment.

Requirement 3:

To determine

To prepare: Journal entry to record the decrease of petty cash fund to $140 from $270.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

4 PTS

What is the amount of the conversion costs?

Suppose the following two independent investment opportunities are available to Fitz, Inc. The appropriate discount rate is 12%. Year Project Gamma Project Theta 0 -$2,500 -$4,100 1 1,300 800 2 1,100 2,100 3 900 3,600 Calculate the profitability index (PI) for each project. Which project should the company accept based on the PI rule? Consider the following cash flows on two mutually exclusive projects for a company. Both projects require an annual return of 15%. Year Project A Project B 0 -$725,500 -$1,450,900 1 275,000 889,000 2 413,800 647,330 3 382,075 554,280 As a financial analyst for the company, you are asked the following questions: If your decision rule is to accept the project with the higher IRR, which project should you choose? Because you are fully aware of the scale problem associated with IRR rule, you calculate the incremental IRR for the cash flows. Based on your…

Answer 2

Question

Chapter 7, Problem 7.16E

Requirement 1:

To determine

Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts like postage, office supplies, and lunches. In day-to-day life, it becomes difficult to use checks for daily expenses. Therefore, companies maintain some minimum amount of funds in the hand for such daily expenses. These funds are called as petty cash funds. These funds are managed by custodian. This system is otherwise called as imprest system.

To prepare: A journal entry to create the petty cash fund.

Requirement 2:

To determine

To prepare: Journal entry to record petty cash fund replenishment.

Requirement 3:

To determine

To prepare: Journal entry to record the decrease of petty cash fund to $140 from $270.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 7, Problem 7.16E

Requirement 1:

To determine

Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts like postage, office supplies, and lunches. In day-to-day life, it becomes difficult to use checks for daily expenses. Therefore, companies maintain some minimum amount of funds in the hand for such daily expenses. These funds are called as petty cash funds. These funds are managed by custodian. This system is otherwise called as imprest system.

To prepare: A journal entry to create the petty cash fund.

Requirement 2:

To determine

To prepare: Journal entry to record petty cash fund replenishment.

Requirement 3:

To determine

To prepare: Journal entry to record the decrease of petty cash fund to $140 from $270.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 7, Problem 7.16E

Requirement 1:

To determine

Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts like postage, office supplies, and lunches. In day-to-day life, it becomes difficult to use checks for daily expenses. Therefore, companies maintain some minimum amount of funds in the hand for such daily expenses. These funds are called as petty cash funds. These funds are managed by custodian. This system is otherwise called as imprest system.

To prepare: A journal entry to create the petty cash fund.

Requirement 2:

To determine

To prepare: Journal entry to record petty cash fund replenishment.

Requirement 3:

To determine

To prepare: Journal entry to record the decrease of petty cash fund to $140 from $270.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 7, Problem 7.16E

Requirement 1:

To determine

Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts like postage, office supplies, and lunches. In day-to-day life, it becomes difficult to use checks for daily expenses. Therefore, companies maintain some minimum amount of funds in the hand for such daily expenses. These funds are called as petty cash funds. These funds are managed by custodian. This system is otherwise called as imprest system.

To prepare: A journal entry to create the petty cash fund.

Requirement 2:

To determine

To prepare: Journal entry to record petty cash fund replenishment.

Requirement 3:

To determine

To prepare: Journal entry to record the decrease of petty cash fund to $140 from $270.

Answer 6

Chapter 7, Problem 7.16E

Requirement 1:

To determine

Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts like postage, office supplies, and lunches. In day-to-day life, it becomes difficult to use checks for daily expenses. Therefore, companies maintain some minimum amount of funds in the hand for such daily expenses. These funds are called as petty cash funds. These funds are managed by custodian. This system is otherwise called as imprest system.

To prepare: A journal entry to create the petty cash fund.

Answer 7

Chapter 7, Problem 7.16E

Requirement 1:

To determine

Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts like postage, office supplies, and lunches. In day-to-day life, it becomes difficult to use checks for daily expenses. Therefore, companies maintain some minimum amount of funds in the hand for such daily expenses. These funds are called as petty cash funds. These funds are managed by custodian. This system is otherwise called as imprest system.

To prepare: A journal entry to create the petty cash fund.

Answer 8

Requirement 2:

To determine

To prepare: Journal entry to record petty cash fund replenishment.

Answer 9

Requirement 2:

To determine

To prepare: Journal entry to record petty cash fund replenishment.

Answer 10

Requirement 3:

To determine

To prepare: Journal entry to record the decrease of petty cash fund to $140 from $270.

Answer 11

Requirement 3:

To determine

To prepare: Journal entry to record the decrease of petty cash fund to $140 from $270.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 7 - Prob. 1QC Ch. 7 - Prob. 2QC Ch. 7 - Prob. 3QC Ch. 7 - Prob. 4QC Ch. 7 - Prob. 5QC Ch. 7 - Prob. 6QC Ch. 7 - Prob. 7QC Ch. 7 - Prob. 8QC Ch. 7 - Prob. 9QC Ch. 7 - Prob. 10QC

Solution Summary: The author explains how a petty cash fund is established to pay insignificant amounts like postage, office supplies, and lunches.

Concept explainers

To prepare: Journal entry to record petty cash fund replenishment.

To prepare: Journal entry to record the decrease of petty cash fund to $140 from $270.

Want to see the full answer?

Chapter 7 Solutions