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. Explain the characteristics and features of an imprest system.

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Answer 1

Question

Chapter 7, Problem 7.23AP

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.

Explain the characteristics and features of an imprest system.

Requirement 2:

To determine

Determine the petty cash fund before replenishment.

Requirement 3:

To determine

Prepare the journal entries.

Requirement 4:

To determine

Journalize the increase of balance in the petty cash fund to $500.

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Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's assets, Liabilities, and Equity?

Need answer general Accounting

Provide correct answer of this question answer general Accounting

Answer 2

Question

Chapter 7, Problem 7.23AP

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.

Explain the characteristics and features of an imprest system.

Requirement 2:

To determine

Determine the petty cash fund before replenishment.

Requirement 3:

To determine

Prepare the journal entries.

Requirement 4:

To determine

Journalize the increase of balance in the petty cash fund to $500.

Expert Solution & Answer

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Answer 3

Question

Chapter 7, Problem 7.23AP

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.

Explain the characteristics and features of an imprest system.

Requirement 2:

To determine

Determine the petty cash fund before replenishment.

Requirement 3:

To determine

Prepare the journal entries.

Requirement 4:

To determine

Journalize the increase of balance in the petty cash fund to $500.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 7, Problem 7.23AP

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.

Explain the characteristics and features of an imprest system.

Requirement 2:

To determine

Determine the petty cash fund before replenishment.

Requirement 3:

To determine

Prepare the journal entries.

Requirement 4:

To determine

Journalize the increase of balance in the petty cash fund to $500.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 7.23AP

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.

Explain the characteristics and features of an imprest system.

Requirement 2:

To determine

Determine the petty cash fund before replenishment.

Requirement 3:

To determine

Prepare the journal entries.

Requirement 4:

To determine

Journalize the increase of balance in the petty cash fund to $500.

Answer 6

Chapter 7, Problem 7.23AP

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.

Explain the characteristics and features of an imprest system.

Answer 7

Chapter 7, Problem 7.23AP

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.

Explain the characteristics and features of an imprest system.

Answer 8

Requirement 2:

To determine

Determine the petty cash fund before replenishment.

Answer 9

Requirement 2:

To determine

Determine the petty cash fund before replenishment.

Answer 10

Requirement 3:

To determine

Prepare the journal entries.

Answer 11

Requirement 3:

To determine

Prepare the journal entries.

Answer 12

Requirement 4:

To determine

Journalize the increase of balance in the petty cash fund to $500.

Answer 13

Requirement 4:

To determine

Journalize the increase of balance in the petty cash fund to $500.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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

Determine the petty cash fund before replenishment.

Prepare the journal entries.

Journalize the increase of balance in the petty cash fund to $500.

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Chapter 7 Solutions