Hemingway Company Uses an Imprest Petty Cash System

question 110

Essay

Hemingway Company uses an imprest petty cash system. The fund was established on March 1 with a balance of $200. During March the following petty cash receipts were found in the petty cash box. The fund was replenished on March 15 when the fund contained $8 in cash. On March 20, the amount in the fund was increased to $300.
Instructions
Journalize the entries in March that pertain to the operation of the petty cash fund.

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Definitions:

Current Ratio

A financial metric used to evaluate a company's ability to pay short-term obligations, calculated by dividing current assets by current liabilities.

Fixed Asset Turnover

A financial ratio that measures how efficiently a company is using its fixed assets to generate sales.

Profit Margin

A financial metric used to evaluate a company's profitability, calculated as net income divided by revenue.

Net Fixed Assets

Assets with a physical form that are held by a company for long-term use, minus depreciation.