If the amount of petty cash is $100, then the Petty Cash account will always report a debit balance of $100. The petty cash fund custodian's supervisor, or designee, is responsible for the following: Approving the request to establish a petty cash fund. The custodian shall cash the warrant, replenish the fund, and record the cash received in the Journal. 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. Mary is the petty cash custodian who is the only person handling the petty cash transactions. D. Debit to Cash Over and Short for $35. After totaling the receipts in the petty cash box, Kelly Garrett Detective Agency spent $65 on Office Supplies and $145 on Auto Expense. Therefore, all the expenses incurred to be debited from the accounts. The cash on hand at this time was $93. will. 5.1 Cash Cash is a financial asset that comprises cash on hand and demand deposits. The petty cash journal entry is a debit to the petty cash account and a credit to the cash account. 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. Date General Journal Debit Credit Jan 08 Journal entry worksheet < 1 N 3 Record the increase of the petty cash fund. The person approving the request should ensure the following: Scrutinize the vouchers, checking that the amounts on the vouchers and receipts agree. 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. Step 3 Fax 6-2393 or email apbaouoregonedu a notification to remove. When the cash is almost depleted, add up the expenses on your itemized list. The entry to record reimbursement of the petty cash fund for postage expense should include: A. In the process Mary discovers that the vouchers add up to only $79. When Petty Cash fund is reimbursed, the expenses incurred through Petty Cash are recorded by debiting those expense. Decide upon the locations where petty cash funds will be installed. Cash is valued at its face value which is equal to its fair value. 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. B. Debit to Cash for $35. The entry to record reimbursement of the petty cash fund for postage expense should include: a. E. A debit to Supplies. Complete a Establish a New Petty Cash/Cash in Drawer Fund or Change Initial Amount Form.. The cash records of the Dillon Company show the following: 1. The fund has a balance of $18. 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. This $100 is the imprest balance. AJHAY, JASPER, AND KELVIN. Credit to Cash for $35. brainly.in/question/4628472 See the Petty Cash Policy for additional details. A $300 petty cash fund has cash of $39 and receipts of $255. Example of Replenishing Petty Cash. The July 31 bank reconciliation indicated that deposits in transit totaled $390. To request reimbursement, the petty cash holder must submit all petty cash vouchers together with the relevant supporting documents. 6 - Transportation, P 100 Transportation Exp 100 Petty Cash Fund 100 Question 4 5 out of 5 points Spencer Co. has a $200 petty cash fund. Physically place the cash in a petty cash drawer or petty cash box. The following list of embezzlement examples is based on my professional knowledge. The fund has a balance of $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 . The journal entry to record the establishment of the fund on September 1 is: Debit Cash $250; credit Petty Cash $250. b. credit to Petty Cash for $255. 104. The consequences of embezzlement can be catastrophic to a small business. There is a cash shortage of $16. The journal entry to record the reimbursement of the account includes a: Selected Answer: Credit to Cash for $182. According to the Hiscox Embezzlement Study, the median amount of an employee theft is a whopping $294,000. On October 15, the petty cash fund was replenished and increased to $1,250 in total. Decide upon the locations where petty cash funds will be installed. The journal entry to record the reimbursement of the fund on September 30 includes a: credit to Cash for $18. Complete a Establish a New Petty Cash/Cash in Drawer Fund or Change Initial Amount Form.. B. Request for Approval Letter Flashcards Quizlet. To make application to the Director of Administrative Services and the Auditor of. approving) a Reconciliation of Petty Cash Fund form. Early in my career I was an in-house lawyer at a regional bank. 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. Prepare the general journal entry to record both the reimbursement and the increase of the petty cash fund on October 15. E. A debit to Supplies. Record the reimbursement of the petty cash fund. Periodically verifying that the petty cash fund is in the fund custodian's possession. E. Debit to Petty Cash for $35. 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. The journal entry to record the reimbursement of the account includes a: Selected Answer: Credit to Cash for $182. At each balancing period or when the float is depleted say by 50% . Ferguson Co. has a $200 petty cash fund. Prepare journal entries to record(a) establishment of the funds and(b) reimbursement of the funds at the end of the current period As an example, prior to signing (i.e. Debit Miscellaneous Expense $250; credit Cash $250. TRANSFERRING THE FUND TO THE BACK-UP CUSTODIAN. Let's illustrate the Cash Short and Over account with the petty cash fund. This can be a simple hand written accounting log or an online spread sheet kept up with by the custodian. 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 . At the end of the first month the accumulated receipts represent $43 for delivery expenses, $127 for merchandise inventory, and $12 for miscellaneous expenses. It should be noted that there is no entry made to the petty cash fund. Suppose for example a business maintains a petty cash fund of 300. 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. Debit Petty Cash $250; credit Accounts Payable $250. The fund has a balance of $18. . The proper entry to record this excess includes a: A. <p>Connect Financial Accounting Chapter 6 Homework and Quiz</p> <p>Q1. Petty cash replenishment refers to the process of restoring the cash balance in the petty cash fund back to its original imprest amount. Learn more: brainly.in/question/14483305. 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. Petty Cash Book A record of all the petty cash vouchers AND REIMBURSEMENT CHEQUES for the week or the month. 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. Whenever possible, local units should use the PCard . A debit to Petty Cash. Ferguson Co. has a $200 petty cash fund. Let's say you designate $75 to your petty cash fund. Example: A $100.00 petty cash fund should have at least $33.00 of activity per month on an annual basis. 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. Meng Co. maintains a $330 petty cash fund. 6. Review and approval of petty cash reimbursement request. a. The petty cashier could not account for a $5 . October petty cash transactions . A company established a $1,000 petty cash fund by issuing a check to the custodian (petty cashier) on October 1. 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). 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. Credit to Merchandise Inventory for $137. 104. E. Debit Cash $200 and credit Petty Cash Over and Short $200. Petty Cash fund per count is P 100. Reimbursement Cheque 5 - Supplies, P 250 Supplies 250 Petty Cash Fund 250 28 PCV No. Palmona uses the perpetual system in accounting for merchandise inventory. On October 1, the accountant determines that the fund should be increased by $50. 6. The accumulated receipts on that date represent $86 for office supplies, $172 for merchandise inventory, and $26 for miscellaneous expenses. Fund has a balance = $18. With an imprest system the balance on the fund (cash + vouchers) is always constant (300). . The entry to replenish the petty cash fund will 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. 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. D. A debit to Cash Short and Over. Palmona uses the perpetual system in accounting for merchandise [] credit to Cash for $250. B. 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. The entry necessary to establish a petty cash fund should . C. A debit to Cash. Hence, the journal entry to record the reimbursement of the fund on September 30 includes a debit of Office Supplies for $73. 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. 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. Any expenditure beyond this amount will require check issuance to the payee. The petty cashier could not account for a $3 shortage in the fund. To ease the payment of cash to vendors b. Create a petty cash transaction log. The purpose of a petty cash fund is to provide business units with sufficient cash to cover minor expenditures. Request to increase idle Cash fund. As you pay for expenses out of petty cash, keep an itemized list of each expenditure. B. The entry to record reimbursement of the petty cash fund for postage expense should include: A. Completing the form will send a request to Accounting where the request will be approved or denied. 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 . Note: Enter debits before credits. The basic process of setting up a petty cash system is: Location. Petty Cash Fund 1,900 Cash in Bank 1,900 26 PCV No. debit Petty Cash for $232. The journal entry to replenish the account would include a. debit to Cash for $255. C. A debit to Cash. The journal entry to replenish the fund on January 31 is: Reimbursement The act of putting money back into the petty cash to make it back to the imprest amount. Waupaca Company establishes a $380 petty cash fund on September 9. 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 . This format is an excellent way to monitor the current amount of petty cash remaining on hand. On January 31, the fund is replenished. 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 petty cash vouchers provide the documentation for the $80 check request. 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. As long as $100 is adequate for the organization's small disbursements, then the . The official record of petty cash expenditure. 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 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. The basic process of setting up a petty cash system is: Location. At all times Mary should have some combination of cash and petty cash vouchers . On these Petty Cash Reimbursement Schedule aim to the airline form Exhibit B and. (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. 94. 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. Sign the PC-7 when approving a petty cash reimbursement when a cash advance was not given. The fund has a balance of $18. 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 imprest petty cash system is a method of accounting for petty cash expenses. On October 1, the accountant determines that the fund should be increased by $50. Study 200-40 PETTY CASH FUNDS flashcards. When you put money into the fund, you must create a journal entry debiting your Petty Cash account and crediting your Cash account. Waupaca Company establishes a $350 petty cash fund on September 9. The cashier creates a journal entry to record the petty cash receipts. Completing the form will send a request to Accounting where the request will be approved or denied. FLUCTUATING FUND SYSTEM TRANSACTIONS JOURNAL ENTRIES 2020 Dec. 23 Replenishment of PCF worth P1,900. The petty cashier could not account for a $5 shortage in the fund. Petty Cash Imprest System. D. Debit Petty Cash for $232 The petty cash journal entry is a debit to the petty cash account and a credit to the cash account. A debit to Postage Expense. During August the Each disbursement from petty cash should be supported by a petty cash voucher b. name of the petty cash fund custodian, department and contact phone number 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 journal entry to record the reimbursement of the fund on September 30 includes a: A. Debit to Office Supplies for $73. Under the Imprest fund system, the 'petty cash fund' account is debited a. Decreasing Funds. (was 210 before) dr petty cash 50 cr cash 50 expenses, $27. Start a petty cash fund by writing a check to "Petty Cash." Cash the check. . 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 January 8, the fund shoes $147 in cash along with receipts for the following expenditures: $38; transportation-in, $13; delivery expenses, $15; and misc. The fund has a balance of $18. 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 . Exercise 8-6 Petty Cash Fund accounting LO P2 Palmona Co. establishes a $240 petty cash fund on January 1. With the first initial payment to petty cash, the custodian should start a log of the transactions that go through the petty cash box. The petty cash! . Pass journal entry - cash transfer to petty cash Rs 15000 for general expenses. Faith Co. allows expenses of P1,000 and below to be charged to Petty Cash Fund. 3 :: What is more useful format in Petty Cash? Date General Journal Debit Credit Jan 08 105. An imprest system of petty cash means that the general ledger account Petty Cash will remain dormant at a constant amount. Cash in foreign . a. Waupaca Company establishes a $380 petty cash fund on September 9.