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.

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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.

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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

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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

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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

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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

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Answer 13

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Answer 14

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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.

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Chapter 7 Solutions