Question

network: homework ch7
my score: 62.48/100 pts (62.48%)
part 3 of 7
on june 1, fab salad dressings creates a petty - cash fund with an imprest balance of $500. during june, ruth morgan, the fund custodian, signs the following petty - cash tickets.
on june 30, prior to replenishment, the fund contains these tickets plus cash of $190. the accounts affected by petty - cash payments are supplies, travel expense, delivery expense, entertainment expense, and merchandise inventory.
requirement 1. explain the characteristics and the internal control features of an imprest fund.
an imprest fund has the same balance at all times, which equals the sum of cash in the fund plus the total of the tickets that support payments from the fund. the internal control feature of an imprest fund is that it clearly identifies 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 fund should hold cash of
petty cash tickets
petty cash
ticket number item amount
101 supplies $40
102 cab fare for executive 25
103 delivery of package across town 20
104 business dinner 95
105 merchandise inventory 140

Explanation:

Step1: Calculate total of petty - cash tickets

$40 + 25+20 + 95+140=320$

Step2: Determine cash amount in fund before replenishment

The imprest balance was $500$. The cash left in the fund is $190$. The amount of cash that should be in the fund before replenishment is the imprest balance. So the cash amount before replenishment is $500$.

Answer:

$500$