On June 1, Meadow Salad Dressings creates a petty cash fund with an imprest balance of $500. During June, Al Franklin, the fund custodian, signs the following petty cash tickets: (Click the icon to view the petty cash tickets.) On June 30, prior to replenishment, the fund contains these tickets plus cash of $220. The accounts affected by petty cash payments are Office Supplies, Travel Expense, Delivery Expense, Entertainment Expense, and Merchandise Inventory. Read the requirements. 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. Data table Petty Cash Ticket Number Item Amount Ticket No. 101 Office supplies $ 50 Ticket No. 102 Cab fare for executive 25 Ticket No. 103 Delivery of package across town 10 Ticket No. 104 Business dinner 80 Ticket No. 105 Merchandise inventory 130 Requirements 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 $700. Include an explanation, and briefly describe what the custodian does. we
On June 1, Meadow Salad Dressings creates a petty cash fund with an imprest balance of $500. During June, Al Franklin, the fund custodian, signs the following petty cash tickets: (Click the icon to view the petty cash tickets.) On June 30, prior to replenishment, the fund contains these tickets plus cash of $220. The accounts affected by petty cash payments are Office Supplies, Travel Expense, Delivery Expense, Entertainment Expense, and Merchandise Inventory. Read the requirements. 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. Data table Petty Cash Ticket Number Item Amount Ticket No. 101 Office supplies $ 50 Ticket No. 102 Cab fare for executive 25 Ticket No. 103 Delivery of package across town 10 Ticket No. 104 Business dinner 80 Ticket No. 105 Merchandise inventory 130 Requirements 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 $700. Include an explanation, and briefly describe what the custodian does. we
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 1PA: On September 1, French company has decided to initiate a petty cash fund in the amount of $800....
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Question
Transcribed Image Text:On June 1, Meadow Salad Dressings creates a petty cash fund with an imprest balance of $500. During June, Al Franklin, the fund custodian, signs the following petty cash tickets:
(Click the icon to view the petty cash tickets.)
On June 30, prior to replenishment, the fund contains these tickets plus cash of $220. The accounts affected by petty cash payments are Office Supplies, Travel Expense, Delivery Expense,
Entertainment Expense, and Merchandise Inventory.
Read the requirements.
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.
×
Data table
Petty Cash
Ticket Number
Item
Amount
Ticket No. 101
Office supplies
$
50
Ticket No. 102
Cab fare for executive
25
Ticket No. 103
Delivery of package across town
10
Ticket No. 104
Business dinner
80
Ticket No. 105
Merchandise inventory
130
Requirements
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 $700. Include
an explanation, and briefly describe what the custodian does.
we
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