Mora Company maintains a petty cash fund for small expenditures. These trans- Journalize and post petty actions occurred during the month of August. cash fund transactions.

Aug. 1 Established the petty cash fund by writing a check on Central Bank for Boe)

$200. 15. Replenished the petty cash fund by writing a check for $170. On this date, the fund consisted of $30 in cash and these petty cash receipts: freight-out

$74.40, entertainment expense $36, postage expense $33.70 and miscellaneous expense $27.50.

16 Increased the amount of the petty cash fund to $400 by writing a check for $200.

31 Replenished the petty cash fund by writing a check for $283. On this date, the fund consisted of $117 in cash and these petty cash receipts:

postage expense $145, entertainment expense $90.60, and freight-out

$46.40.

Instructions

(a) Journalize the petty cash transactions.

(b) Post to the Petty Cash account.

(c) What internal control features exist in a petty cash fund?