Answer problem 25A

chapter Learning Objective 4P7-25A Accounting for petty cash transactions On June 1, Fab Salad Dressings creates a pe $300. During June, Al Franklin, the fund custodian, signs the following petry cas tty cash fund with an imprest balance of 3 June 30, Cash CR $210 Petty Cash Ticket Number 101 102 103 104 105 Item Office supplies Cab fare for executive Delivery of package across town Business dinner Merchandise inventory Amount s 30 20 50 40 90 On June 30, prior to replenishment, the fund contains these tickets plus cash of $%. The accounts affected by petty cash payments are Office Supples, 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 4. Make the July 1 entry to increase the fund balance to $375. Include an esplanation and briefly describe what the custodian does