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.

Question

Want to see the full answer?

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Financial Accounting

Cost ACCOUNT

I want to correct answer accounting questions

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Want to see the full answer?

Chapter 7 Solutions