Hangin’ Out 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, $ 77, and delivery expense, $ 20.
1. Explain how an imprest petty cash system works.
2. Journalize the establishment of the petty cash fund on March 1 and the replenishing of the fund on March 31.
3. Prepare a T-account for Petty Cash, and post to the account. What is Petty Cash’s balance at all times?