Reference no: EM132315754
Question :
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 is 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 S650. Include an explanation, and briefly describe what the custodian does.
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Date
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Accounts and Explanation
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Debit
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Credit
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June 30
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Delivery Expense
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501
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Office Supplies
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25
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Travel Expense
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20
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Entertainment Expense
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80
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Cash Short and Over
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Cash
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Begin by journalizing the creation of the fund.
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Date
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Accounts and Explanation
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Debit
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Credit
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June 1
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Petty Cash
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500
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Cash
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500
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To open the petty cash fund
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Requirement 1. Explain the characteristics and the internal control features of an imprest kind.
An imprest fund has the same 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 kind should hold cash of $____
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Petty Cash
Ticket Number
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Item
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Amount
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101
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Office supplies
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$ 25
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102
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Cab fare for executive
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20
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103
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Delivery of package across town
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50
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104
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Business dinner
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80
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105
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Merchandise inventory
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105
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