Question

On July 1, 2014, Acting Company established an imprest (petty cash) fund in the amount of $800.00 in cash from a check drawn for the purpose of establishing the fund.
On July 31, the petty cash fund has cash of $62.84 and the following receipts on hand: for merchandise received $408.60; freight-in, $131.48; laundry service, $168.00; and miscellaneous expense, $29.08. A check was drawn to replenish the fund.
On Aug. 31, the petty cash fund has cash of $110.00 and the following receipts on hand: merchandise, $393.68; freight-in, $152.60; laundry service, $168.00; and miscellaneous expense, $15.72. The petty cash custodian is not able to account for the excess cash in the fund. A check is drawn to replenish the fund.

Required
1. Prepare the journal entries necessary to record each of these transactions. The company uses the periodic inventory system.
2. What are two examples of why a local semiprofessional baseball team might have need for an imprest (petty cash) system?



$1.99
Sales6
Views226
Comments0
  • CreatedMarch 26, 2014
  • Files Included
Post your question
5000