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.

Question

Want to see the full answer?

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

General Accounting please answer

Please explain the correct approach for solving this general accounting question.

On January 1, 2021, Northstar Innovations purchased equipment for $22,000. The equipment was estimated to have an 8-year useful life and a residual value of $1,200. Straight-line depreciation is used. On January 1, 2023, the equipment was exchanged for a delivery vehicle with a fair value of $18,400. Assuming that the exchange had commercial substance, how much would be recorded as a gain or loss on disposal of the equipment on January 1, 2023?

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

Want to see the full answer?

Check out a sample textbook solution

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

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 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.

Want to see the full answer?

Chapter 7 Solutions