Response to the following questions:
1. Describe how an imprest petty cash system works. What is the main control feature of an imprest system?
2. Atlantic Press maintains an imprest petty cash fund of $400 which is under the control of Brenda Montague. At November 30, the fund holds $220 cash and petty cash tickets for travel expense, $80; office supplies, $60; and delivery expense, $40.
Journalize
(a) establishment of the petty cash fund on November 1 and
(b) replenishment of the fund on November 30.
3. Prepare a T-account for Petty Cash, and post to the account. What is Petty Cash's balance at all times?