Jazzy Night Club maintains an imprest petty cash fund of $250, which is under the control of Sandra Morgan. At March 31, the fund holds $24 cash and petty cash tickets for office supplies, $224, and delivery expense, $15.
Requirements
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 the balance of the Petty Cash account at all times?