Forney Company maintains a petty cash fund for small expenditures. The follow-

ing transactions occurred over a 2-month period.

July

Established petty cash fund by writing a check on Scranton Bank for $200.

15

Replenished the petty cash fund by writing a check for $196.00. On this date

the fund consisted of $4.00 in cash and the following petty cash receipts:

freight-out $92.00, postage expense $42.40, entertainment expense $46.60, and

miscellaneous expense $11.20.

31

Replenished the petty cash fund by writing a check for $192.00. At this date,

the fund consisted of $8.00 in cash and the following petty cash receipts:

freight-out $82.10, charitable contributions expense $45.00, postage expense

$25.50, and miscellaneous expense $39.40.

Aug. 15

Replenished the petty cash fund by writing a check for $187.00. On this date,

the fund consisted of $13.00 in cash and the following petty cash receipts:

freight-out $77.60, entertainment expense $43.00, postage expense $33.00, and

miscellaneous expense $37.00.

16

Increased the amount of the petty cash fund to $300 by writing a check for

$100.

31

Replenished the petty cash fund by writing a check for $284.00. On this date,

the fund consisted of $16 in cash and the following petty cash receipts: postage

expense $140.00, travel expense $95.60, and freight-out $47.10.

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?