1. Explain how an imprest petty cash system works.
2. Atlantic Press maintains an imprest petty cash fund of $300, which is under the control of Gladys Yu. At November 30, the fund holds $80 cash and petty cash tickets for $140 of office supplies and $100 of delivery expenses. Journalize (a) the establishment of the petty cash fund on November 1 and (b) the replenishment of the fund on November 30.
3. Prepare a T-account for Petty Cash and post to the account. What is Petty Cash's balance at all times?