debit Petty Cash for $232. E. A debit to Supplies. (was 210 before) dr petty cash 50 cr cash 50 If the amount of petty cash is $100, then the Petty Cash account will always report a debit balance of $100. The entry to record reimbursement of the petty cash fund for postage expense should include: a. The petty cashier could not account for a $5 shortage in the fund. . C. A debit to Cash. The imprest petty cash system is a method of accounting for petty cash expenses. See the Petty Cash Policy for additional details. 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. D. A debit to Cash Short and Over. Petty cash replenishment refers to the process of restoring the cash balance in the petty cash fund back to its original imprest amount. The journal entry to replenish the fund on January 31 is: Reimbursement Cheque a. A debit to Postage Expense. 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. 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. Prepare the general journal entry to record both the reimbursement and the increase of the petty cash fund on October 15. Hence, the journal entry to record the reimbursement of the fund on September 30 includes a debit of Office Supplies for $73. Date General Journal Debit Credit Jan 08 Journal entry worksheet < 1 N 3 Record the increase of the petty cash fund. Waupaca Company establishes a $350 petty cash fund on September 9. Record the reimbursement of the petty cash fund. 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.… Faith Co. allows expenses of P1,000 and below to be charged to Petty Cash Fund. This can be a simple hand written accounting log or an online spread sheet kept up with by the custodian. Decreasing Funds. Study 200-40 PETTY CASH FUNDS flashcards. Termination or Reduction of Petty Cash Funds. 6. Review and approval of petty cash reimbursement request. B. On June 29, the company determined that the petty cash fund needed to be decreased to $1,000. After totaling the receipts in the petty cash box, Kelly Garrett Detective Agency spent $65 on Office Supplies and $145 on Auto Expense. . Periodically verifying that the petty cash fund is in the fund custodian's possession. The journal entry to record the reimbursement of the account includes a: Selected Answer: Credit to Cash for $182. Reimbursement The act of putting money back into the petty cash to make it back to the imprest amount. The purpose of a petty cash fund is to provide business units with sufficient cash to cover minor expenditures. The petty cash vouchers provide the documentation for the $80 check request. Cash in foreign . Let's say you designate $75 to your petty cash fund. 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 . D. Debit Petty Cash for $232 The fund has a balance of $18. (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. At the end of the current period, the fund contained $198 and had the following receipts: entertainment, $50; postage.$24; and printing,$8. The petty cash fund custodian's supervisor, or designee, is responsible for the following: Approving the request to establish a petty cash fund. This $100 is the imprest balance. Petty Cash Book A record of all the petty cash vouchers AND REIMBURSEMENT CHEQUES for the week or the month. The petty cash journal entry is a debit to the petty cash account and a credit to the cash account. The entry to record reimbursement of the petty cash fund for postage expense should include: A. 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. 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. 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. Decide upon the locations where petty cash funds will be installed. The July 31 bank reconciliation indicated that deposits in transit totaled $390. Completing the form will send a request to Accounting where the request will be approved or denied. . Sign the PC-7 when approving a petty cash reimbursement when a cash advance was not given. The journal entry to record the reimbursement of the fund on September 30 includes a: credit to Cash for $18. The basic process of setting up a petty cash system is: Location. 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). Completing the form will send a request to Accounting where the request will be approved or denied. Create a petty cash transaction log. Fund has a balance = $18. 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. There is a cash shortage of $16. 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. Meng Co. maintains a $330 petty cash fund. 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. As you pay for expenses out of petty cash, keep an itemized list of each expenditure. An imprest system of petty cash means that the general ledger account Petty Cash will remain dormant at a constant amount. 105. The cash on hand at this time was $93. 104. 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. In the process Mary discovers that the vouchers add up to only $79. During August the With an imprest system the balance on the fund (cash + vouchers) is always constant (300). 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. At all times Mary should have some combination of cash and petty cash vouchers . Waupaca Company establishes a $380 petty cash fund on September 9. Ferguson Co. has a $200 petty cash fund. 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. On October 1, the accountant determines that the fund should be increased by $50. This format is an excellent way to monitor the current amount of petty cash remaining on hand. 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 . Brooks Agency set up a petty cash fund for $280. The cashier creates a journal entry to record the petty cash receipts. 5.1 Cash Cash is a financial asset that comprises cash on hand and demand deposits. On October 1, the accountant determines that the fund should be increased by $50. As an example, prior to signing (i.e. The custodian shall cash the warrant, replenish the fund, and record the cash received in the Journal. The cashier creates a journal entry to record the petty cash receipts. 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 . Question 4 5 out of 5 points Spencer Co. has a $200 petty cash fund. Petty Cash Imprest System. FLUCTUATING FUND SYSTEM TRANSACTIONS JOURNAL ENTRIES 2020 Dec. 23 Replenishment of PCF worth P1,900. 6. The entry necessary to establish a petty cash fund should . Ferguson Co. has a $200 petty cash fund. approving) a Reconciliation of Petty Cash Fund form. will. 3 :: What is more useful format in Petty Cash? Prepare journal entries to record(a) establishment of the funds and(b) reimbursement of the funds at the end of the current period D. Debit to Cash Over and Short for $35. Note: Enter debits before credits. Let's illustrate the Cash Short and Over account with the petty cash fund. Petty Cash fund per count is P 100. Under the Imprest fund system, the 'petty cash fund' account is debited a. Credit to Cash for $35. 5 - Supplies, P 250 Supplies 250 Petty Cash Fund 250 28 PCV No. Learn more: brainly.in/question/14483305. As long as $100 is adequate for the organization's small disbursements, then the . The petty cashier could not account for a $5 . E. Debit to Petty Cash for $35. Whenever possible, local units should use the PCard . 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. 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 The journal entry to record the reimbursement of the account includes a: Selected Answer: Credit to Cash for $182. Palmona uses the perpetual system in accounting for merchandise […] Request to increase idle Cash fund. 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. 93. Early in my career I was an in-house lawyer at a regional bank. Decreasing Funds. 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. Each disbursement from petty cash should be supported by a petty cash voucher b. 94. Decide upon the locations where petty cash funds will be installed. <p>Connect Financial Accounting Chapter 6 Homework and Quiz</p> <p>Q1. Debit Petty Cash $250; credit Accounts Payable $250. The following list of embezzlement examples is based on my professional knowledge. To ease the payment of cash to vendors b. . 104. When you put money into the fund, you must create a journal entry debiting your Petty Cash account and crediting your Cash account. debit to Office Supplies for $73. Complete a Establish a New Petty Cash/Cash in Drawer Fund or Change Initial Amount Form.. A company established a $1,000 petty cash fund by issuing a check to the custodian (petty cashier) on October 1. The petty cash journal entry is a debit to the petty cash account and a credit to the cash account. • name of the petty cash fund custodian, department and contact phone number The journal entry to record the reimbursement of the fund on September 30 includes a: A. Debit to Office Supplies for $73. When Petty Cash fund is reimbursed, the expenses incurred through Petty Cash are recorded by debiting those expense. TRANSFERRING THE FUND TO THE BACK-UP CUSTODIAN. credit to Cash for $250. Example of Replenishing Petty Cash. Therefore, all the expenses incurred to be debited from the accounts. 105. 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. Assume that the company has a petty cash fund of $100 and its general ledger account Petty Cash reports an imprest balance of $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. The journal entry to replenish the account would include a. debit to Cash for $255. The consequences of embezzlement can be catastrophic to a small business. E. Debit Cash $200 and credit Petty Cash Over and Short $200. AJHAY, JASPER, AND KELVIN. Example: A $100.00 petty cash fund should have at least $33.00 of activity per month on an annual basis. At the end of the first month the accumulated receipts represent $43 for delivery expenses, $127 for merchandise inventory, and $12 for miscellaneous expenses. a. B. The petty cashier could not account for a $3 shortage in the fund. On October 1, the accountant determines that the fund should be increased by $50. Q1. A $300 petty cash fund has cash of $39 and receipts of $255. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. 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. Waupaca Company establishes a $380 petty cash fund on September 9. Cash is valued at its face value which is equal to its fair value. 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. At the end of the first month the accumulated receipts represent $43 for delivery expenses, $127 for merchandise inventory, and $12 for miscellaneous expenses. A debit to Petty Cash. Short Problem #3 . The basic process of setting up a petty cash system is: Location. The fund has a balance of $18. E. A debit to Supplies. The fund has a balance of $18. Palmona uses the perpetual system in accounting for merchandise inventory. The entry to record reimbursement of the petty cash fund for postage expense should include: A. Debit Miscellaneous Expense $250; credit Cash $250. Credit to Merchandise Inventory for $137. 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. The petty cash! A debit to postage expense 16. The journal entry to record the establishment of the fund on September 1 is: Debit Cash $250; credit Petty Cash $250. 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. To request reimbursement, the petty cash holder must submit all petty cash vouchers together with the relevant supporting documents. 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. 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. C. A debit to Cash. At each balancing period or when the float is depleted say by 50% . expenses, $27. The official record of petty cash expenditure. When the cash is almost depleted, add up the expenses on your itemized list. B. Debit to Cash for $35. 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. The proper entry to record this excess includes a: A. Request for Approval Letter Flashcards Quizlet. Question 4 5 out of 5 points Spencer Co. has a $200 petty cash fund. E. Debit Cash $200 and credit Petty Cash Over and Short $200. On January 31, the fund is replenished. A debit to Postage Expense. Start a petty cash fund by writing a check to "Petty Cash." Cash the check. On October 15, the petty cash fund was replenished and increased to $1,250 in total. Exercise 8-6 Petty Cash Fund accounting LO P2 Palmona Co. establishes a $240 petty cash fund on January 1. Step 3 Fax 6-2393 or email apbaouoregonedu a notification to remove. The entry to replenish the petty cash fund will include: a. Any expenditure beyond this amount will require check issuance to the payee. To make application to the Director of Administrative Services and the Auditor of. Pass journal entry - cash transfer to petty cash Rs 15000 for general expenses. According to the Hiscox Embezzlement Study, the median amount of an employee theft is a whopping $294,000. The accumulated receipts on that date represent $86 for office supplies, $172 for merchandise inventory, and $26 for miscellaneous expenses. brainly.in/question/4628472 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. The fund has a balance of $18. 6 - Transportation, P 100 Transportation Exp 100 Petty Cash Fund 100 The cash records of the Dillon Company show the following: 1. credit to Merchandise Inventory for $137. Complete a Establish a New Petty Cash/Cash in Drawer Fund or Change Initial Amount Form.. It should be noted that there is no entry made to the petty cash fund. b. credit to Petty Cash for $255. The fund has a balance of $18. Mary is the petty cash custodian who is the only person handling the petty cash transactions. With the first initial payment to petty cash, the custodian should start a log of the transactions that go through the petty cash box. October petty cash transactions . Date General Journal Debit Credit Jan 08 B. On these Petty Cash Reimbursement Schedule aim to the airline form Exhibit B and. Suppose for example a business maintains a petty cash fund of 300. 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 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. 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 . Steps for creating a petty cash fund. D. A debit to Cash Short and Over. Petty Cash Fund 1,900 Cash in Bank 1,900 26 PCV No. 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 . Physically place the cash in a petty cash drawer or petty cash box. The person approving the request should ensure the following: Scrutinize the vouchers, checking that the amounts on the vouchers and receipts agree. C. Credit to Cash for $250. 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. A debit to Petty Cash. C. Credit to Cash Over and Short for $35.
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