End of Chapter: Internal Control and Cash

On June 30, prior to replenishment, the fund contains these tickets plus

cash of $90. The accounts affected by petty cash payments are Office

Supplies, Travel Expense, Delivery Expense, Entertainment Expense, and

Merchandise Inventory.

Requirements

1. Explain the characteristics and the internal control features of an

imprest fund.

2. On June 30, how much cash should the petty cash fund hold before

it is replenished?

3. Journalize all required entries to create the fund and replenish it.

Include explanations.

3. June 30, Cash CR $210

4. Make the July 1 entry to increase the fund balance to $375. Include

an explanation and briefly describe what the custodian does.

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