I-06.04 Problem

I-06.04 Problem - I-06.04 This problem provides a tangible,...

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I-06.04 This problem provides a tangible, team exercise pertaining to the correct operation of a petty cash fund. Begin by forming a 9 person team consisting of 4 employees, a banker, a petty cash custodian, a treasurer, an accountant, and an auditor. Each person should begin by printing their respective page that follows. The problem process will go as follows: Step 1 The treasurer will prepare a check to create a $100 petty cash fund, and present this check to the banker who will cash the check. The accountant should record this transaction in the journal. Step 2 The treasurer will present the cash to the petty cash custodian, and each employee will next present their receipts for reimbursement. You may assume presented receipts are legitamate and meet company guidelines. Step 3 Employee #1, who has not be reimbursed by the fund for any expenses, will reconcile the petty cash account in the presence of the petty cash custodian. The employee will inform the treasurer of the amount needed for reimbursement. The treasurer will prepare a check for reimbursement and to increase the total petty cash fund to a balance of $150. The treasurer will present the check to the bank and provide the funds to the petty cash custodian. The accountant should record this activity in the journal. 1 of 10
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I-06.04 EMPLOYEE # 1 Your objective is to be sure that receipts plus cash equal the $100 fund amount. You should observe the petty cash custodian perform the count. It would be a bad practice for you to actually touch the money since you would then be a "suspect" in any shortage
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I-06.04 Problem - I-06.04 This problem provides a tangible,...

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