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Unformatted text preview: 1, the entry in general journal form is: Petty Cash Cash (To establish a petty cash fund) Ethics Note Petty cash funds are authorized and legitimate. In contrast, slush funds are unauthorized and hidden (under the table). The fund custodian cashes the check and places the proceeds in a locked petty cash box or drawer. Most petty cash funds are established on a fixed-amount basis . Moreover, the company will make no additional entries to the Petty Cash account unless the stipulated amount of the fund is changed. For example, if Laird Company decides on July 1 to increase the size of the fund to $250, it would debit Petty Cash $150 and credit Cash $150....
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This note was uploaded on 11/06/2011 for the course ACCOUNTING ac 201 taught by Professor - during the Spring '11 term at Montgomery.
- Spring '11