Dorset company decides to establish a petty cash fund. the owner, edna dorset, wants to establish a $100.00 petty cash fund and limit payments to $20.00 or less. the manager, roy evans, suggests a petty cash fund of $3,000.00 limited to payments of $50.00 or less. mr. evans claims this limit will him avoid writing so many checks. do you agree with ms. dorset or mr. evans? explain.

On april 1, santa fe, inc. paid griffith publishing company $2,448 for 36-month subscriptions to several different magazines. santa fe debited the prepayment to a prepaid subscriptions account, and the subscriptions started immediately. what amount should appear in the prepaid subscription account for santa fe, inc. after adjustments on december 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustment has been made?