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 explain: The working of imprest petty cash systems.

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Answer 1

Question

Chapter 7, Problem 7.17E

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 explain: The working of imprest petty cash systems.

Requirement 2:

To determine

To prepare: Journal entries to record the petty cash transactions.

Requirement 3:

To determine

To prepare: T-accounts of petty cash.

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Answer 2

Question

Chapter 7, Problem 7.17E

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 explain: The working of imprest petty cash systems.

Requirement 2:

To determine

To prepare: Journal entries to record the petty cash transactions.

Requirement 3:

To determine

To prepare: T-accounts of petty cash.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 7, Problem 7.17E

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 explain: The working of imprest petty cash systems.

Requirement 2:

To determine

To prepare: Journal entries to record the petty cash transactions.

Requirement 3:

To determine

To prepare: T-accounts of petty cash.

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Answer 4

Question

Chapter 7, Problem 7.17E

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 explain: The working of imprest petty cash systems.

Requirement 2:

To determine

To prepare: Journal entries to record the petty cash transactions.

Requirement 3:

To determine

To prepare: T-accounts of petty cash.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 7.17E

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 explain: The working of imprest petty cash systems.

Requirement 2:

To determine

To prepare: Journal entries to record the petty cash transactions.

Requirement 3:

To determine

To prepare: T-accounts of petty cash.

Answer 6

Chapter 7, Problem 7.17E

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 explain: The working of imprest petty cash systems.

Answer 7

Chapter 7, Problem 7.17E

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 explain: The working of imprest petty cash systems.

Answer 8

Requirement 2:

To determine

To prepare: Journal entries to record the petty cash transactions.

Answer 9

Requirement 2:

To determine

To prepare: Journal entries to record the petty cash transactions.

Answer 10

Requirement 3:

To determine

To prepare: T-accounts of petty cash.

Answer 11

Requirement 3:

To determine

To prepare: T-accounts of petty cash.

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 the working of imprest petty cash systems.

Concept explainers

To prepare: Journal entries to record the petty cash transactions.

To prepare: T-accounts of petty cash.

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Chapter 7 Solutions