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. The petty cash fund before replenishment.

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Answer 1

Question

Chapter 7, Problem 7.24AP

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.

The petty cash fund before replenishment.

Requirement 2:

To determine

To journalize: Petty cash transactions

Requirement 3:

To determine

To prepare: Journal entry for the establishment of the petty cash fund

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Watts Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The company estimated manufacturing overhead at $306,000 for the year and direct labor hours a 117,000. Actual manufacturing overhead costs incurred during the year totaled $285,000. Actual direct labor hours were 118,000. What was the overapplied or underapplied overhead for the year?

Answer 2

Question

Chapter 7, Problem 7.24AP

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.

The petty cash fund before replenishment.

Requirement 2:

To determine

To journalize: Petty cash transactions

Requirement 3:

To determine

To prepare: Journal entry for the establishment of the petty cash fund

Expert Solution & Answer

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Answer 3

Question

Chapter 7, Problem 7.24AP

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.

The petty cash fund before replenishment.

Requirement 2:

To determine

To journalize: Petty cash transactions

Requirement 3:

To determine

To prepare: Journal entry for the establishment of the petty cash fund

Expert Solution & Answer

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Answer 4

Question

Chapter 7, Problem 7.24AP

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.

The petty cash fund before replenishment.

Requirement 2:

To determine

To journalize: Petty cash transactions

Requirement 3:

To determine

To prepare: Journal entry for the establishment of the petty cash fund

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 7.24AP

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.

The petty cash fund before replenishment.

Requirement 2:

To determine

To journalize: Petty cash transactions

Requirement 3:

To determine

To prepare: Journal entry for the establishment of the petty cash fund

Answer 6

Chapter 7, Problem 7.24AP

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.

The petty cash fund before replenishment.

Answer 7

Chapter 7, Problem 7.24AP

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.

The petty cash fund before replenishment.

Answer 8

Requirement 2:

To determine

To journalize: Petty cash transactions

Answer 9

Requirement 2:

To determine

To journalize: Petty cash transactions

Answer 10

Requirement 3:

To determine

To prepare: Journal entry for the establishment of the petty cash fund

Answer 11

Requirement 3:

To determine

To prepare: Journal entry for the establishment of the petty cash fund

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

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 journalize: Petty cash transactions

To prepare: Journal entry for the establishment of the petty cash fund

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Chapter 7 Solutions