On June 1, Top Taste Salad Dressings creates a petty cash fund with an imprest balance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On June 1, Top Taste Salad Dressings creates a petty cash fund with an imprest balance of $400. During June, Michael Martell, the fund custodian, signs the following petty cash tickets: E (Click the icon to view the petty cash tickets.) On June 30, prior to replenishment, the fund contains these tickets plus cash of $150. The accounts affected by petty cash payments are Office Supplies, Travel Expense, Delivery Expense, Entertainment Expense, and Merchandise Inventory. Read the tequirements. Requirement 1. Explain the characteristics and the internal control features of an imprest fund. An imprest fund has balance at all times, which equals the sum of plus the that support payments from the fund. The internal control feature of an imprest fund is that it the amount of money for which the fund custodian is responsible. Requirement 2. On June 30, how much cash should the petty cash fund hold before it is replenished? Before it is replenished, the petty cash fund should hold cash of Requirement 3. Journalize all required entries to create the fund and replenish it. Include explanations. (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the creation of the fund. Petty Cash Ticket Number Item Amount Ticket No. 101 Office supplies $ 45 Ticket No. 102 Cab fare for executive 25 Ticket No. 103 Delivery of package across town 20 Ticket No. 104 Business dinner 70 Ticket No. 105 Merchandise inventory 110 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 it replenished? 3. Journalize all required entries to create the fund and replenish it. Include explanations. 4. Make the July 1 entry to increase the fund balance to $600. Include an explanation, and briefly describe what the custodian does. On June 1, Top Taste Salad Dressings creates a petty cash fund with an imprest balance of $400. During June, Michael Martell, the fund custodian, signs the following petty cash tickets: E (Click the icon to view the petty cash tickets.) On June 30, prior to replenishment, the fund contains these tickets plus cash of $150. The accounts affected by petty cash payments are Office Supplies, Travel Expense, Delivery Expense, Entertainment Expense, and Merchandise Inventory. Read the tequirements. Requirement 1. Explain the characteristics and the internal control features of an imprest fund. An imprest fund has balance at all times, which equals the sum of plus the that support payments from the fund. The internal control feature of an imprest fund is that it the amount of money for which the fund custodian is responsible. Requirement 2. On June 30, how much cash should the petty cash fund hold before it is replenished? Before it is replenished, the petty cash fund should hold cash of Requirement 3. Journalize all required entries to create the fund and replenish it. Include explanations. (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the creation of the fund. Petty Cash Ticket Number Item Amount Ticket No. 101 Office supplies $ 45 Ticket No. 102 Cab fare for executive 25 Ticket No. 103 Delivery of package across town 20 Ticket No. 104 Business dinner 70 Ticket No. 105 Merchandise inventory 110 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 it replenished? 3. Journalize all required entries to create the fund and replenish it. Include explanations. 4. Make the July 1 entry to increase the fund balance to $600. Include an explanation, and briefly describe what the custodian does.
Expert Answer:
Answer rating: 100% (QA)
Answer Solution 3 Date Account Title Explanation Debit Credit J... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
On September 1, Top Taste Salad Dressings creates a petty cash fund with an imprest balance of $300. During September, Michael Martell, the fund custodian, signs the following petty cash tickets: On...
-
On September 1, Cool Salad Dressings creates a petty cash fund with an imprest balance of $250. During September, Michael Martell, the fund custodian, signs the following petty cash tickets: On...
-
On September 1, Party Salad Dressings creates a petty cash fund with an imprest balance of $600. During September, Michael Martell, the fund custodian, signs the following petty cash tickets: On...
-
1) The mast on the boat is held in place by the rigging, which consists of rope having a diameter of 25 mm and a total length of 50m. Assuming the rope to be cylindrical, determine the drag it exerts...
-
Information from Goddard Picture Frames Cash account as well as the January bank statement is presented next. Cheque #210 was written for $300 to pay salaries. Requirements 1. Prepare the bank...
-
Define planning, organizing, and controlling.
-
The price of a share is \(\$ 25\), and after two months it will be \(\$ 23\) or \(\$ 27\). The risk-free interest rate is \(10 \%\) per year, continuously compounded. If \(S_{T}\) is the price of the...
-
Laras Landscaping Service has the following chart of accounts: Assets 111 Cash 113 Accounts Receivable 115 Supplies 117 Prepaid Insurance 124 Equipment Liabilities 221 Accounts Payable Owners Equity...
-
Consider the following graph and the heuristic values of each state. The start state is S and the only goal state is G. B E S A Heuristic BCD E G 6 0 6 4 1 10 0 a) What path would uniform cost graph...
-
1. Cho, Inc. has the following items: loss on discontinued operations ($400K), loss on disposal of discontinued operations ($250K), tax rate (20%). If the above items are pre-tax dollar amounts, what...
-
Two 220 volt, 100 watt bulbs are connected first in series and then in parallel. Each time the combination is connected to a 220 volt a.c. supply line. The power drawn by the combination in each case...
-
Water at 40 C flows steadily from a large open tank and discharges to atmosphere through a pipe (D = 150mm), as shown in the figure (below). If the barometric (absolute) pressure is 96.5 kPa,...
-
Why is Haumea an oblate spheroid? a. Because it is not big enough to be a regular sphere. b. Because it has a very large crater c. Because it spins rapidly. d. Because of tidal forces from one of its...
-
Two charged disks that are 36.0 cm apart face each other. The radius of each disk is 15.6 cm, the charge on the left disk is -4.30 nC, and the charge on the right disk is +4.30 nC. What is the...
-
As an object approaches a converging lens from beyond the focal point, its image O a decreases in size. Ob. increases in size. O c. stays the same size. O d. decreases in size to a point and then...
-
Massless strings are wrapped around several discs of equal mass. Boxes of varying masses are hung from the strings. If the discs are held static, answer the following questions: (a) (b) (d) y y M M...
-
Regarding Health Policy Indicators, the most important indicator of political commitment is the allocation of adequate resources with the following relevant indicators, EXCEPT: a. Proportion of GDP...
-
The landing gear of an aircraft with: mass of 2000 kg the spring-mass-damper system Consider that the runway surface is y(t) = 0.2 cos 157.08t stiffness of the spring is 5 x 105 N/m. What is the...
-
Journalize the following labor-related transactions for Portland Glass at its plant in Portland, Oregon. Assume that the labor has been incurred, but not yet paid. Plant janitors wages...... $ 650...
-
The August 31 bank statement of Watson Healthcare has just arrived from United Bank. To prepare the bank reconciliation, you gather the following data: a. The August 31 bank balance is $5,630. b. The...
-
Ned Timmons, engineer, is considering using a computerized accounting system for his professional engineering business. Ned has asked that you help him understand the components of a computerized...
-
Near the state capitol, a heritage center houses historical artifacts of significance to the state dating from pre-statehood to the present. The center is particularly well done and serves as both a...
-
Opponents to charging an entrance fee as described in Problem 32 note that only 15,000 visitors will utilize the heritage center, and the benefits of \(\$ 5(14,000)+\$ 3(12,000)=\$ 106,000\) derived...
-
The federal government is planning a hydroelectric project for a river basin. The project will provide electrical energy to the local area and to the grid. With some enhancements to the basic plan,...
Study smarter with the SolutionInn App