Just Hangin' Night Club maintains an imprest petty cash fund of $100, which is under the control of Sandra Morgan. At March 31, the fund holds $9 cash and petty cash tickets for office supplies,$80, and delivery expense, $25.Readthe requirements.Requirement 1. Complete the following to explain how an imprest petty cash system works.Maintaining the Petty Cash account at itsis the nature of an imprest system. The imprest system requires that,Y. This clearly identifies thethe petty cash box containsand it is the system's main internal

A business or organization's small cash reserve is referred to as petty cash, and it is used to pay…

Answered: Night Club maintains an imprest petty…

Night Club maintains an imprest petty cash fund of $100, which is under the control of Sandra Morgan. At March 31, the fund hold livery expense, $25. quirements.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section5.4: Petty Cash

Problem 1WT

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a. Why would a business use a Petty Cash Fund? b. Describe the entry needed to establish a 50 Petty Cash Fund and an entry to reimburse the fund.
On July 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare journal entries for the following transactions: A. On July 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $125, Supplies $368, Postage Expense $325, Repairs and Maintenance Expense $99, Miscellaneous Expense $259. The cash on hand at this time was $38. B. On June 14, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $425, Supplies $95, Postage Expense $240, Repairs and Maintenance Expense $299, Miscellaneous Expense $77. The cash on hand at this time was $110. C. On June 23, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $251, Supplies $188, Postage Expense $263, Repairs and Maintenance Expense $182, Miscellaneous Expense $203. The cash on hand at this time was $93. D. On June 29, the company determined that the petty cash fund needed to be decreased to $1,000. E. On June 30, the petty cash fund needed replenishment, as it was month end. The following are the receipts: Auto Expense $14, Supplies $75, Postage Expense $150, Repairs and Maintenance Expense $121, Miscellaneous Expense $39. The cash on hand at this time was $603.
On September 1, French company has decided to initiate a petty cash fund in the amount of $800. Prepare journal entries for the following transactions: A. On September 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $37, Supplies $124, Postage Expense $270, Repairs and Maintenance Expense $168, Miscellaneous Expense $149. The cash on hand at this time was $48. B. On September 14, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $18, Supplies $175, Postage Expense $50, Repairs and Maintenance Expense $269, Miscellaneous Expense $59. The cash on hand at this time was $210. C. On September 23, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $251, Supplies $88, Postage Expense $63, Repairs and Maintenance Expense $182, Miscellaneous Expense $203. The cash on hand at this time was $20. D. On September 29, the company determined that the petty cash fund needed to be increased to $1,000. E. On September 30, the petty cash fund needed replenishment as it was month end. The following are the receipts: Auto Expense $18, Supplies $15, Postage Expense $57, Repairs and Maintenance Expense $49, Miscellaneous Expense $29. The cash on hand at this time was $837.
Determine whether each cash payment procedure is an internal control strength or weakness. 1. A voucher system is used for all payments of liabilities. 2. The owner of a small business has authority to write and sign checks. 3. When the owner is out of town, the recordkeeper is in charge of signing checks. 4. To save time, all departments are allowed to incur liabilities. 5. Payments over $100 are made by check. 6. Requesting and receiving merchandise are handled by the same department.
Controlling petty cash Just Hangin’ Night Club maintains an imprest petty cash hind of $150, which is under the control of Sandra Morgan. On March 31, the fund holds $14 cash and petty cash tickets for office supplies, $128, and delivery expense, $15. Requirements Explain how an imprest petty cash system works. Journalize the establishment of the petty cash fund on March 1 and the replenishing of the fund on March 31. Prepare a T-account for Petty Cash and post it to the account. What is the balance of the Petty Cash account at all times?
! Required information [The following information applies to the questions displayed below.] Service World maintains a petty cash fund. The fund custodian encountered the following events. a. The fund was established when a check for $375 was cashed and deposited into a locked cash box. b. An employee submitted a receipt for a customer delivery costing $35 and was reimbursed in full from petty cash. c. Another employee submitted a receipt for $75 for locksmith repairs to the office door and was reimbursed in full from petty cash. d. An employee submitted a receipt for newspaper advertising that cost the company $65. She was given $65 from the petty cash box. e. The petty cash custodian received and cashed a check that fully replenished the petty cash fund. f. An employee submitted a receipt for $50 for supplies and was reimbursed in full from petty cash. g. An employee submitted a receipt for $80 for filling up his personal vehicle. He was not reimbursed because it would violate…
Match each of the following cash payment activities to the internal control principle to which itbest relates. Enter the appropriate letter in the space provided.1. The business manager has the only key to thecheck-signing equipment.2. The purchasing manager orders all goods andservices for the business.3. A bank reconciliation is prepared monthly.4. Prenumbered checks are used for all payments.5. The company asks suppliers to deliver their merchandise to the warehouse but mail their invoicesto the accounting department.A. Establish responsibilityB. Segregate dutiesC. Restrict accessD. Document proceduresE. Independently verify
Petty Cash Fund Prepare journal entries for each of the following. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Issued a check to establish a petty cash fund of $750. b. The amount of cash in the petty cash fund is $240. Issued a check to replenish the fund, based on the following summary of petty cash receipts: store supplies, $299 and miscellaneous selling expense, $189. Record any missing funds in the cash short and over account. For a compound transaction, if an amount box does not require an entry, leave it blank.
Record the following transactions into the general journal. Be sure to include explanations. When finished upload your journal to this problem. Establish a petty cash fund of $150 on September 1 with check #1001. On September 10, the petty cash fund was replenished with check #1015 when there was $16 remaining and there were petty cash receipts for: office supplies, $30; transportation-in on inventory purchased, (company uses perpetual method) $52; and postage, $42. On September 15, the petty cash fund was increased to $175 in total with check #1020.
Match each of the following cash receipt activities to the internal control principle to which it bestrelates. Enter the appropriate letter in the space provided.1. A list of checks received in the mail is prepared.2. Total cash receipts are compared to the amounton the bank deposit slip.3. A password is required to open the cash register.4. Price changes at the checkout require a manager’sapproval.5. Cashiers are required to count the cash in theirregister at the beginning and end of each shift.A. Establish responsibilityB. Segregate dutiesC. Restrict accessD. Document proceduresE. Independently verify
Service World maintains a petty cash fund. The fund custodian encountered the following events.a. The fund was established when a check for $300 was cashed and deposited into a locked cashbox.b. An employee submitted a receipt for a customer delivery costing $20 and was reimbursed infull from petty cash.c. Another employee submitted a receipt for $60 for locksmith repairs to the office door andwas reimbursed in full from petty cash.d. An employee submitted a receipt for newspaper advertising that cost the company $50. Shewas given $50 from the petty cash box.e. The petty cash custodian received and cashed a check that fully replenished the petty cashfund.f. An employee submitted a receipt for $35 for supplies and was reimbursed in full from pettycash.g. An employee submitted a receipt for $65 for filling up his personal vehicle. He was notreimbursed because it would violate company policy.h. At the end of the month, a check was given to the petty cash custodian to not only replenishthe…
Petty Cash Fund Journalize the necessary entries for each of the following: a. Issued a check to establish a petty cash fund of $800. If an amount box does not require an entry, leave it blank. Petty Cash Cash v Feedback V Check My Work a. Recall that the only time Petty Cash is used is when the fund is initially established or increased. b. The amount of cash in the petty cash fund is $270. Issued a check to replenish the fund, based on the following summary of petty cash receipts: store supplies, $310 and miscellaneous selling expense, $196. Record any missing funds in the cash short and over account. If an amount box does not require an entry, leave it blank. Store Supplies Miscellaneous Selling Expense Cash Short and Over Cash Feedback V Check My Work b. Remember that at all times, the petty cash and/or receipts must equal the amount in the petty cash fund. Therefore, to replenish the fund, you add all receipts removed from petty cash and subtract that from the amount that should…