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 prepare : A journal entry to create the petty cash fund. Date Accounts and Explanation Post Ref Debit ($) Credit ($) Petty Cash (A+) 750 Cash (A–) 750 (To record the creation of petty cash fund.) Table -1

Chapter 7 Solutions

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 prepare: A journal entry to create the petty cash fund.

Date Accounts and Explanation Post Ref Debit ($) Credit ($)
Petty Cash (A+) 750
Cash (A–) 750
(To record the creation of petty cash fund.)

Table -1

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 prepare: A journal entry to create the petty cash fund.

Date Accounts and Explanation Post Ref Debit ($) Credit ($)
Petty Cash (A+) 750
Cash (A–) 750
(To record the creation of petty cash fund.)

Table -1

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 prepare: A journal entry to create the petty cash fund.

Date Accounts and Explanation Post Ref Debit ($) Credit ($)
Petty Cash (A+) 750
Cash (A–) 750
(To record the creation of petty cash fund.)

Table -1

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 prepare: A journal entry to create the petty cash fund.

Date Accounts and Explanation Post Ref Debit ($) Credit ($)
Petty Cash (A+) 750
Cash (A–) 750
(To record the creation of petty cash fund.)

Table -1

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 prepare: A journal entry to create the petty cash fund.

Date Accounts and Explanation Post Ref Debit ($) Credit ($)
Petty Cash (A+) 750
Cash (A–) 750
(To record the creation of petty cash fund.)

Table -1

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 prepare: A journal entry to create the petty cash fund.

Date Accounts and Explanation Post Ref Debit ($) Credit ($)
Petty Cash (A+) 750
Cash (A–) 750
(To record the creation of petty cash fund.)

Table -1

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 prepare: A journal entry to create the petty cash fund.

Date Accounts and Explanation Post Ref Debit ($) Credit ($)
Petty Cash (A+) 750
Cash (A–) 750
(To record the creation of petty cash fund.)

Table -1

Solution Summary: The author explains that petty cash funds are established to pay insignificant amounts like postage, office supplies, and lunches.

To prepare: Journal entry to record petty cash fund replenishment.

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To prepare: Journal entry to record petty cash fund replenishment.

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To prepare: Journal entry to record petty cash fund replenishment.

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To prepare: Journal entry to record petty cash fund replenishment.

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To prepare: Journal entry to record petty cash fund replenishment.

To prepare: Journal entry to record petty cash fund replenishment.

To prepare: Journal entry to record petty cash fund replenishment.

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To prepare: Journal entry to record petty cash fund replenishment.

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Concept explainers

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Answer 1

Question

Chapter 7, Problem 7.24EX

Requirement A:

To determine

Requirement B:

To determine

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Use the information below to answer the following questions Rita Franklin is employed at Mighty Ltd. in Jamaica. For the month of June, 2017, she received a gross salary of $60,000. She contributes 5% or her gross salary towards an approved pension scheme. As an employee, her statutory deductions include NIS, NHT and education tax. 1. What is Rita’s statutory income? A.$53,875 B.$55,500 C.$57,000 D.$63,000 2. How much would be deducted for education tax? A.$1248.75 B.$1212.19 C.$1282.50 D.$1417.50 3. What would Rita receive as her net pay? A.$52,882.50 B.$53,051.25 C.$51,462.81 D.$53,017.50

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Answer 2

Question

Chapter 7, Problem 7.24EX

Requirement A:

To determine

Requirement B:

To determine

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Answer 3

Question

Chapter 7, Problem 7.24EX

Requirement A:

To determine

Requirement B:

To determine

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Answer 4

Question

Chapter 7, Problem 7.24EX

Requirement A:

To determine

Requirement B:

To determine

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Answer 5

Chapter 7, Problem 7.24EX

Requirement A:

To determine

Requirement B:

To determine

Answer 6

Chapter 7, Problem 7.24EX

Requirement A:

To determine

Answer 7

Chapter 7, Problem 7.24EX

Requirement A:

To determine

Answer 8

Requirement B:

To determine

Answer 9

Requirement B:

To determine

Answer 10

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Answer 11

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Answer 13

Ch. 7 - Prob. 1DQ Ch. 7 - Prob. 2DQ Ch. 7 - Prob. 3DQ Ch. 7 - Prob. 4DQ Ch. 7 - Prob. 5DQ Ch. 7 - Prob. 6DQ Ch. 7 - Prob. 7DQ Ch. 7 - Prob. 8DQ Ch. 7 - Prob. 9DQ Ch. 7 - Prob. 10DQ

Accounts and Explanation

Post Ref

Debit ($)

Credit ($)

Petty Cash (A+)

(To record the creation of petty cash fund.)