C. A debit to Cash. Once approval is submitted to decrease your petty cash/cash drawer, complete an Advanced Deposit (AD) e-doc and deposit the cash on hand.The object code for this transaction is 1100- petty . Reimbursement The act of putting money back into the petty cash to make it back to the imprest amount. A debit to postage expense 16. 5.1 Cash Cash is a financial asset that comprises cash on hand and demand deposits. will. Record the reimbursement of the petty cash fund. The petty cashier could not account for a $5 shortage in the fund. AJHAY, JASPER, AND KELVIN. Periodically verifying that the petty cash fund is in the fund custodian's possession. At all times Mary should have some combination of cash and petty cash vouchers . The entry to record the establishment of fund $100 petty cash fund is: Making Disbursements from the Fund The custodian of the petty cash fund is in charge of approving and making all disbursements. D. A debit to Cash Short and Over. Question 4 5 out of 5 points Spencer Co. has a $200 petty cash fund. As an example, prior to signing (i.e. Debit Miscellaneous Expense $250; credit Cash $250. It is important to understand that at all times the total of the cash held plus the petty cash vouchers should equal the original imprest fund. Whenever possible, local units should use the PCard . The petty cash custodian refills the petty cash drawer or box, which should now contain the original amount of cash that was designated for the fund. The fund has a balance of $18. credit to Merchandise Inventory for $137. The creation of a petty cash fund requires a journal entry to reflect the transfer of fund out of the general cash account c. At any time, the sum of the cash in the petty cash fund and the total of the petty cash vouchers should equal the amount for which the . Learn more: brainly.in/question/14483305. During August the It should be noted that there is no entry made to the petty cash fund. A somewhat more useful format is to record all debits and credits in a single column, with a running cash balance in the column furthest to the right, as shown in the following example. On September 30, the fund shows $121 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $58; postage expenses, $53; and miscellaneous expenses, $143. With an imprest system the balance on the fund (cash + vouchers) is always constant (300). D. Debit Petty Cash for $232 E. A debit to Supplies. Complete a Establish a New Petty Cash/Cash in Drawer Fund or Change Initial Amount Form.. E. Debit Cash $200 and credit Petty Cash Over and Short $200. The petty cash journal entry is a debit to the petty cash account and a credit to the cash account. Mary is the petty cash custodian who is the only person handling the petty cash transactions. At the end of an accounting period a count of the petty cash shows that the fund contains cash of 240 and expense vouchers for supplies of 40 . The petty cashier could not account for a $5 . Under the Imprest fund system, the 'petty cash fund' account is debited a. There is a cash shortage of $16. According to the Hiscox Embezzlement Study, the median amount of an employee theft is a whopping $294,000. Decide upon the locations where petty cash funds will be installed. Prepare the general journal entry to record both the reimbursement and the increase of the petty cash fund on October 15. Credit to Merchandise Inventory for $137. The journal entry to record the reimbursement of the account includes a: Selected Answer: Credit to Cash for $182. As long as $100 is adequate for the organization's small disbursements, then the . The petty cash! On June 29, the company determined that the petty cash fund needed to be decreased to $1,000. dr postage expense 36 dr delivery exp 13 dr misc exp 25 dr merch inv 11 cr cash 85 (36+13+11+25=85) Reimburse the petty cash fund and increase it to $260. On October 1, the accountant determines that the fund should be increased by $50. Note: Enter debits before credits. On June 23, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $251, Supplies $188, Postage Expense $263, Repairs and Maintenance Expense $182, Miscellaneous Expense $203. Prepare journal entries to record(a) establishment of the funds and(b) reimbursement of the funds at the end of the current period Assume that the company has a petty cash fund of $100 and its general ledger account Petty Cash reports an imprest balance of $100. October petty cash transactions . This can be a simple hand written accounting log or an online spread sheet kept up with by the custodian. Study 200-40 PETTY CASH FUNDS flashcards. At the end of the current period, the fund contained $198 and had the following receipts: entertainment, $50; postage.$24; and printing,$8. Petty Cash fund per count is P 100. E. A debit to Supplies. Short Problem #3 . Steps for creating a petty cash fund. . Request to increase idle Cash fund. After totaling the receipts in the petty cash box, Kelly Garrett Detective Agency spent $65 on Office Supplies and $145 on Auto Expense. On January 8, the fund shoes $147 in cash along with receipts for the following expenditures: $38; transportation-in, $13; delivery expenses, $15; and misc. Therefore, all the expenses incurred to be debited from the accounts. 94. A $300 petty cash fund has cash of $39 and receipts of $255. The intent is to simplify the reimbursement of staff members and visitors for small expenses that generally do not Exceed $25.00, such as taxi fares, postage, office supplies, etc. E. Debit to Petty Cash for $35. The petty cashier's summary of petty cash payments serves as a journal entry that is posted to the appropriate general ledger account c. The reimbursement of the petty cash fund should be credited to the cash account d. Entries that include a credit to the cash account should be recorded at the time the payments from the petty cash fund are made. Reimbursement Cheque Date General Journal Debit Credit Jan 08 Journal entry worksheet < 1 N 3 Record the increase of the petty cash fund. This format is an excellent way to monitor the current amount of petty cash remaining on hand. . 104. The journal entry to record the reimbursement of the account includes a: Selected Answer: Credit to Cash for $182. 6 - Transportation, P 100 Transportation Exp 100 Petty Cash Fund 100 On September 30, the fund shows $104 in cash along with receipts for the following expenditures: transportation-in, $40; postage expenses, $123; and miscellaneous expenses, $80. Waupaca Company establishes a $380 petty cash fund on September 9. D. Debit to Cash Over and Short for $35. The accumulated receipts on that date represent $86 for office supplies, $172 for merchandise inventory, and $26 for miscellaneous expenses. B. A debit to Postage Expense. Palmona uses the perpetual system in accounting for merchandise inventory. Required Required 2 Required 3 Prepare the journal entry to establish the petty cash fund View transaction list Journal entry worksheet Wrote a $340 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier. Create a petty cash transaction log. To request reimbursement, the petty cash holder must submit all petty cash vouchers together with the relevant supporting documents. A petty cash system is a set of policies, procedures, controls, and forms that a company uses to dispense cash for various miscellaneous needs, such as office supplies and services. On September 30, the fund shows $121 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $58; postage expenses, $53; and miscellaneous expenses, $143. The person approving the request should ensure the following: Scrutinize the vouchers, checking that the amounts on the vouchers and receipts agree. (To record the reimbursement of the account) Note: All the expenses includes delivery expenses, merchandise inventory and miscellaneous expenses are debited and cash credited for $182. On January 31, the fund is replenished. E. Debit Cash $200 and credit Petty Cash Over and Short $200. A debit to Petty Cash. C. A debit to Cash. Mary will debit the accounts indicated on the petty cash vouchers and then debit Cash Short and Over for $1 (the amount that is not accounted for). Exercise 8-6 Petty Cash Fund accounting LO P2 Palmona Co. establishes a $240 petty cash fund on January 1. At the end of the day, the cash register's record shows $1,000 but the count of cash in the register is $1,035. • name of the petty cash fund custodian, department and contact phone number To ease the payment of cash to vendors b. Meng Co. maintains a $330 petty cash fund. A petty cash system is a set of policies, procedures, controls, and forms that a company uses to dispense cash for various miscellaneous needs, such as office supplies and services. Termination or Reduction of Petty Cash Funds. The journal entry to record the reimbursement to the petty cash fund would include: Multiple Choice a credit to Petty Cash Fund for $210 a credit to Office Supplies for $65 a credit to Cash for $210 a. The fund has a balance of $18. Ferguson Co. has a $200 petty cash fund. 6. Review and approval of petty cash reimbursement request. FLUCTUATING FUND SYSTEM TRANSACTIONS JOURNAL ENTRIES 2020 Dec. 23 Replenishment of PCF worth P1,900. The basic process of setting up a petty cash system is: Location. Palmona uses the perpetual system in accounting for merchandise […] The official record of petty cash expenditure. 93. Waupaca Company establishes a $380 petty cash fund on September 9. The journal entry to record the reimbursement of the fund on September 30 includes a: credit to Cash for $18. On October 1, the accountant determines that the fund should be increased by $50. The following list of embezzlement examples is based on my professional knowledge. D. A debit to Cash Short and Over. 6. The consequences of embezzlement can be catastrophic to a small business. The cash on hand at this time was $93. Petty cash replenishment refers to the process of restoring the cash balance in the petty cash fund back to its original imprest amount. Hence, the journal entry to record the reimbursement of the fund on September 30 includes a debit of Office Supplies for $73. This $100 is the imprest balance. The entry to record reimbursement of the petty cash fund for postage expense should include: A. Complete a Establish a New Petty Cash/Cash in Drawer Fund or Change Initial Amount Form.. B. Debit to Cash for $35. Once approval is submitted to decrease your petty cash/cash drawer, complete an Advanced Deposit (AD) e-doc and deposit the cash on hand.The object code for this transaction is 1100- petty . To make application to the Director of Administrative Services and the Auditor of. With the first initial payment to petty cash, the custodian should start a log of the transactions that go through the petty cash box. approving) a Reconciliation of Petty Cash Fund form. Petty Cash Book A record of all the petty cash vouchers AND REIMBURSEMENT CHEQUES for the week or the month. brainly.in/question/4628472 Cash in foreign . debit Petty Cash for $232. The entry to record reimbursement of the petty cash fund for postage expense should include: a. The fund has a balance of $18. 3 :: What is more useful format in Petty Cash? The basic process of setting up a petty cash system is: Location. Waupaca Company establishes a $350 petty cash fund on September 9. credit to Cash for $250. Step 3 Fax 6-2393 or email apbaouoregonedu a notification to remove. Each disbursement from petty cash should be supported by a petty cash voucher b. Example of Replenishing Petty Cash. Now, let's say that you distribute petty cash for the following expenses: $10.50 for postage $45.50 for pizza for a team meeting $14.00 for office supplies Assume that the custodian of a $450 petty cash fund has $62 in coins and currency plus $383 in receipts at the end of the month. The journal entry to record the establishment of the fund on September 1 is: Debit Cash $250; credit Petty Cash $250. On October 15, the petty cash fund was replenished and increased to $1,250 in total. The July 31 bank reconciliation indicated that deposits in transit totaled $390. Faith Co. allows expenses of P1,000 and below to be charged to Petty Cash Fund. Q1. To effectively control cash disbursements 1-2 fDIAGNOSTIC EXAM IN AUD PROB c. To effectively plan cash inflows and outflows d. To determine the honesty of the petty cashier 18. The petty cashier could not account for a $3 shortage in the fund. Fund has a balance = $18. Let's illustrate the Cash Short and Over account with the petty cash fund. Brooks Agency set up a petty cash fund for $280. In the process Mary discovers that the vouchers add up to only $79. Decide upon the locations where petty cash funds will be installed. Request for Approval Letter Flashcards Quizlet. Let's assume that a company has a petty cash fund of $100 and its general ledger account Petty Cash has a debit balance of $100. The entry to replenish the petty cash fund will include: a. When you put money into the fund, you must create a journal entry debiting your Petty Cash account and crediting your Cash account. 104. Start a petty cash fund by writing a check to "Petty Cash." Cash the check. Salient features: Under this Imprest system, the amount of money in the petty cash is kept at a fixed sum or float which can be $100.00 ( depending on the size of the organization and its uses) An initial float is given to the cashier or the custodian. When Petty Cash fund is reimbursed, the expenses incurred through Petty Cash are recorded by debiting those expense. A: Solution: "The reimbursement of the petty cash fund should be credited to the cash account" this is… question_answer Q: A common audit procedure to verify the existence assertion of cash account balances is: a.… The entry necessary to establish a petty cash fund should . The cashier creates a journal entry to record the petty cash receipts. Any expenditure beyond this amount will require check issuance to the payee. Sign the PC-7 when approving a petty cash reimbursement when a cash advance was not given. C. Credit to Cash for $250. Question 4 5 out of 5 points Spencer Co. has a $200 petty cash fund. Decreasing Funds. TRANSFERRING THE FUND TO THE BACK-UP CUSTODIAN. Date General Journal Debit Credit Jan 08 The petty cash fund, which originally contained the imprest fund of 100 in cash, now contains two petty cash vouchers for a total of 65, and the remaining cash held of 35. Debit Petty Cash $250; credit Accounts Payable $250. A debit to Postage Expense. The journal entry to record the reimbursement of the fund on September 30 includes a: A. Debit to Office Supplies for $73. b. credit to Petty Cash for $255. . See the Petty Cash Policy for additional details. The petty cash fund custodian's supervisor, or designee, is responsible for the following: Approving the request to establish a petty cash fund. Example: A $100.00 petty cash fund should have at least $33.00 of activity per month on an annual basis. Completing the form will send a request to Accounting where the request will be approved or denied. To request a reimbursement to the petty cash fund, the custodian must prepare and sign the State of Washington Voucher Distribution for A19-2B (available on Accounts Payable website) with the following information. Decreasing Funds. The custodian shall cash the warrant, replenish the fund, and record the cash received in the Journal. A debit to Petty Cash. <p>Connect Financial Accounting Chapter 6 Homework and Quiz</p> <p>Q1. The petty cash custodian refills the petty cash drawer or box, which should now contain the original amount of cash that was designated for the fund. Let's say you designate $75 to your petty cash fund. When the cash is almost depleted, add up the expenses on your itemized list. C. Credit to Cash Over and Short for $35. B. The purpose of a petty cash fund is to provide business units with sufficient cash to cover minor expenditures. At the end of the first month the accumulated receipts represent $43 for delivery expenses, $127 for merchandise inventory, and $12 for miscellaneous expenses. The fund has a balance of $18. A petty cash fund should have on the average, activity equal to one third of its fund balance per month, or it may be considered as excess and its balance reduced. The journal entry to replenish the account would include a. debit to Cash for $255. A company established a $1,000 petty cash fund by issuing a check to the custodian (petty cashier) on October 1. a. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. The imprest petty cash system is a method of accounting for petty cash expenses. Physically place the cash in a petty cash drawer or petty cash box. The petty cash vouchers provide the documentation for the $80 check request. On these Petty Cash Reimbursement Schedule aim to the airline form Exhibit B and. 105. Cash is valued at its face value which is equal to its fair value. At each balancing period or when the float is depleted say by 50% . Under the system, the petty cash fund balance is always maintained at a fixed amount decided on when the fund is first established.. During an accounting period petty cash is used to pay cash expenses which are supported by petty cash vouchers.At the end of the period a petty cash reconciliation is carried out . The fund has a balance of $18. If the amount of petty cash is $100, then the Petty Cash account will always report a debit balance of $100. (was 210 before) dr petty cash 50 cr cash 50 . The proper entry to record this excess includes a: A. expenses, $27. The cashier creates a journal entry to record the petty cash receipts. Suppose for example a business maintains a petty cash fund of 300. On October 1, the accountant determines that the fund should be increased by $50. Petty Cash Imprest System. How to Record the Petty Cash Replenishment The accounting records will show the following bookkeeping entries when the business withdraws cash to replenish the petty cash fund. The journal entry to replenish the fund on January 31 is: 5 - Supplies, P 250 Supplies 250 Petty Cash Fund 250 28 PCV No. An imprest system of petty cash means that the general ledger account Petty Cash will remain dormant at a constant amount. debit to Office Supplies for $73. Completing the form will send a request to Accounting where the request will be approved or denied. The cash records of the Dillon Company show the following: 1. The entry to record reimbursement of the petty cash fund for postage expense should include: A. Pass journal entry - cash transfer to petty cash Rs 15000 for general expenses. Petty Cash Fund 1,900 Cash in Bank 1,900 26 PCV No. B. As you pay for expenses out of petty cash, keep an itemized list of each expenditure. Let's now assume that when the petty cash fund is replenished, there is $6.00 on hand and there are $93.00 of petty cash vouchers. At the end of the first month the accumulated receipts represent $43 for delivery expenses, $127 for merchandise inventory, and $12 for miscellaneous expenses. 105. Ferguson Co. has a $200 petty cash fund. The petty cash journal entry is a debit to the petty cash account and a credit to the cash account. Early in my career I was an in-house lawyer at a regional bank. On October 1, 2020, Faith Company established an imprest petty cash fund by issuing a check for P2,000 to Joy Youz, the custodian of the petty cash fund. Credit to Cash for $35.

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