Steppin’ Out Night Club maintains an imprest petty cash fund of \($150\), which is under the control of Brenda Montague. At December 31, the fund holds \($14\) cash and petty cash tickets for office supplies, \($111\), and delivery expense, $30.
Requirements
1. Explain how an imprest petty cash system works.
2. Journalize establishment of the petty cash fund on December 1 and replenishment of the fund on December 31.
3. Prepare a T-account for Petty cash, and post to the account. What is Petty cash s balance at all times?