On June 1, Cool Salad Dressings creates a petty cash fund with an imprest balanc
ID: 2333718 • Letter: O
Question
On June 1, Cool Salad Dressings creates a petty cash fund with an imprest balance of $300. During June, Michael Martell, the fund custodian, signs the following petty cash tickets.
On June 30, prior to replenishment, the fund contains these tickets plus cash of $75. The accounts affected by petty cash payments are Office Supplies, Travel Expense, Delivery Expense, Entertainment Expense, and Merchandise Inventory.
Read the 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 its replenished?
3.) Journalize all required entries to create the fund and replenish it. Include explanations.
3.) Make the July 1 entry to increase the fund balance to $450. Include an explanation, and briefly describe what the custodian does.
P7-25A (similar to Question Help On June 1, Cool Salad Dressings creates a petty cash fund with an imprest balance of $300. During June, Michael Martell, the fund custodian, signs the following petty cash tickets: EEB (Click the icon to view the petty cash tickets.) On June 30, prior to replenishment, the fund contains these tickets plus cash of $75. The accounts affected by petty cash payments are Office Supplies, Travel Expense, Delivery Expense, Entertainment Expense, and Merchandise Inventory. Read the requirements Requirement 1. Explain the characteristics and the internal control features of an imprest fund. An imprest fund has the fund. The internal control feature of an imprest fund is that it plus the that support payments from V balance at all times, which equals the sum of Vthe amount of money for which the fund custodian is responsible Click to select your answer(s) and then click Check Answer parts remaining Clear All Check AnswerExplanation / Answer
1. An imprest fund has the same balance at all times, which equals the sum of cash in the fund plus the receipts/tickets that support payments from the fund. The internal control feature of an imprest fund is that it clearly identifies the amount of money for which the fund custodian is responsible.
Kindly select appropriately from the drop-down list, the closest in meaning to the answers provided since the drop-down list has not been posted along with the question.
2. On June 30, the petty cash fund should hold $50 cash before it is replenished.
$300 - ($50 + $30 + $45 + $55 + $70) = $300 - $250 = $50
3.
4.
The custodian disburses cash from the petty cash fund against receipts pertaining to expenses incurred. When the petty cash balance drops and is required to be replenished, the custodian applies for cash from the cashier by submitting all the receipts.
Date Account Titles and Explanation Debit Credit Jun. 1 Petty Cash 300 Cash 300 (To record establishment of petty cash fund) Jun. 30 Office supplies 50 Travel expense 30 Delivery expense 45 Entertainment expense 55 Merchandise inventory 70 Cash short or over 25 Cash 225 (To record replenishment of petty cash fund)Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.