Suppose that on April 1 Exxon opens a regional office in Omaha and creates a petty cash fund with an imprest balance of \(\$ 400\). During April, Caroline Stump, the fund custodian, signs the following petty cash tickets:

On April 30, prior to replenishment, the fund contains these tickets plus \(\$ 84.77\). The accounts affected by petty cash disbursements are Office Supplies Expense, Travel Expense, Delivery Expense, Entertainment Expense, and Postage Expense.
\section*{Required}
1. Explain the characteristics and the internal control features of an imprest fund.
2. Make the general journal entries to create the fund and to replenish it. Include explanations. Also, briefly describe what the custodian does on these dates.
3. Make the entry on May 1 to increase the fund balance to \(\$ 500\). Include an explanation, and briefly describe what the custodian does.

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102 Ticket Number 101 Office supplies Item Cab fare for executive Amount $86.89 25.00 103 Delivery of package across town 37.75 104 Dinner money for sales manager entertaining a customer 80.00 105 Postage for package received 10.00 106 Decorations for office party 19.22 107 Six boxes of floppy disks 44.37