Suppose that on June 1 Pellegrini Electronics opens a district office in Nashville and creates a petty cash fund with an imprest balance of \(\$ 350\). During June, Dana Pellegrini, the fund custodian, signs the following petty cash tickets:

On June 30, prior to replenishment, the fund contains these tickets plus \(\$ 173.51\). 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 July 1 to increase the fund balance to \(\$ 500\). Include an explanation, and briefly describe what the custodian does.

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Ticket Number 2 -23+5 4 7 67 Item Postage for package received Decorations and refreshments for office party Two boxes of floppy disks Typewriter ribbons Dinner money for sales manager entertaining a Amount $ 8.40 13.19 20.82 27.13 50.00 Plane ticket for executive business trip to Memphis Delivery of package across town 69.00 6.30 customer