Business, 03.07.2020 22:01 germainenez3288

On June1, MeadowSalad Dressings creates a petty cash fund with an imprest balance of $600. During June, Jackson Demers, the fund custodian, signs the following petty cash tickets: Petty Cash Ticket Number Item Amount
101 Office Supplies $55
102 Cab fare for executive 40
103 Delivery of package across town 5
104 Business Dinner 95
105 Merchandise Inventory 140

On June30, prior to replenishment, the fund contains these tickets plus cash of $ 330.The accounts affected by petty cash payments are Office Supplies, Travel Expense, Delivery Expense, Entertainment Expense, and Merchandise Inventory.

Required:
a. Explain the characteristics and the internal control features of an imprest fund.
b. On June 30, how much cash should the petty cash fund hold before it is replenished?
c. Journalize all required entries to create the fund and replenish it. Include explanations.
d. Make the July 1 entry to increase the fund balance to $500. Include an explanation, and briefly describe what the custodian does.

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On June1, MeadowSalad Dressings creates a petty cash fund with an imprest balance of $600. During Ju...

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