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.

Question

Want to see the full answer?

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

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Provide question answer financial accounting

Sondela Crafts is a small company that specialises in the manufacture of curios to customer specifications. The company recently opened a specialised unit that is dedicated to the manufacture of a curio piece popularly known as “Ilala”. The unit is staffed by manager and various sales personnel. The unit manager is remunerated on a fixed salary basis and the sales personnel receive a fixed salary plus commission. As part of a review of the first year of operations, the unit manager has provided you with the following information as part of an effort to assess the unit’s financial viability: Selling Price per unit R600 Variable manufacturing cost per unit R390 Facilities rental per annum R1 200 000 Salaries (excluding sales commissions) R4 000 000 The unit manager is unsure of how to deal with selling and administration expenses. She has extracted the following information from the…

General accounting

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

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 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

Want to see the full answer?

Chapter 7 Solutions