Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

problem 26 On June 30, prior to replenishment, the fund contains these tickets plus cash of $90. The accounts affected by petry cash payments are

image text in transcribed

problem 26

On June 30, prior to replenishment, the fund contains these tickets plus cash of $90. The accounts affected by petry cash payments are Office Supplies, Travel Ixpense, Delivery Expense, Entertainment Expense, and Merchandise Inventory 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 $375. Include an explanation and briefly describe what the custodian does. Learning Objective 4 2. June 30, Cash CR 5160 P8-26A Accounting for petty cash transactions Suppose that on June 1, Rockin' Gyrations, a disc jockey service, creates a petty cash fund with an imprest balance of $300. During June, Michael Martell, fund custodian, signs the following petty cash tickets: Amount $ 30 Petty Cash Ticket Number Item Postage for package received Office party Two boxes of stationery Printer cartridges Business dinner On June 30, prior to replenishment, the fund contains these tickets plus cash of $140. The accounts affected by petty cash payments are Office Supplies, Entertainment Expense, and Postage Expense. Requirements 1. On June 30, how much cash should this petty cash fund hold before it is replenished? 2. Journalize all required entries to (a) create the fund and (b) replenish it. Include explanations 3. Make the entry on July 1 to increase the fund balance to $325. Include an explanation

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

Principles Of External Auditing

Authors: Brenda Porter, Jon Simon, David Hatherly

2nd Edition

470842973, 470842970, 978-0470842973

More Books

Students also viewed these Accounting questions

Question

Why is the cash flow of a residential mortgage loan unknown?

Answered: 1 week ago

Question

i need correct answrrs 7 2 .

Answered: 1 week ago