Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On June 1, Party Salad Dressings creates a petty cash fund with an imprest balance of $400 During June, Ruth Mangan, the fund custodian, signs

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On June 1, Party Salad Dressings creates a petty cash fund with an imprest balance of $400 During June, Ruth Mangan, the fund custodian, signs the following petty cash tickets: Click the icon to view the petty cash tickets On June 30, prior to replenishment, the fund contains these tickets plus cash of $60. The accounts affected by petty cash payments are ofice Supplies Travel Expenso, Delvery Expense, Entertainment Expense, and Merchandise Inventory Read the requirements Petty Cash Ticket Number Item Amount Office supplies $ 60 Ticket No. 101 Ticket No. 102 Ticket No. 103 Cab fare for executive 40 Delivery of package across town 45 Ticket No. 104 Business dinner 80 Ticket No. 105 Merchandise inventory 120 Requirements 1. Explain the characteristics and the internal control features of an imprest fund. 2. On June 30, how much cash should the petty cash fund hold before it is replenished? 3. Journalize all required entries to create the fund and replenish it. Include explanations. 4. Make the July 1 entry to increase the fund balance to $550. Include an explanation, and briefly describe what the custodian does. Requirement 2. On June 30, how much cash should the petty cash fund hold before it is replenished? Before it is replenished the petty cash fand should hold cash of Requirement 3. Joumalize all required entries to create the fund and replenish it. Include explanations (Racord debits first, then, credits. Select the explanation on the last line of the journal entry table) Begin by journalizing the creation of the fund Date Accounts and Explanation Debit Credit Begin by journalizing the creation of the fund. Date Accounts and Explanation Debit Credit June 1 Journalize the replenishment of the fund. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit June 30 Requirement 4. Make the July 1 entry to increase the fund balance to $550. Include an exploration, and briety describe what the custodian does. Record detits first, then credits Select the explanation on the last line of the journal entry table) Make the entry July 1 to increase the fund balance to $550. Date Accounts and Explanation Debit Credit July 1 Briefly describe what the custodian does. The custodian the check and places of currency and coin

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Reporting

Authors: Alan Melville

7th Edition

1292293128, 9781292293127

More Books

Students also viewed these Accounting questions

Question

=+What are the outcomes?

Answered: 1 week ago

Question

3.1 Given A = 3E1, E3, E6, E94 , define A.

Answered: 1 week ago