Munger

Corporation established a

$350

petty cash fund on

January

12,

2024.

Kaleigh

Munger

(KM)

is the fund custodian. At the end of the month, the petty cash fund contains the following:

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.

Requirement 1. Select the three internal control weaknesses revealed in the given data.

A.

Petty cash ticket no. 46 is missing. There is no indication of what happened to this ticket.

B.The petty cash custodian

(KM)

did not sign petty cash ticket no. 45. Both the fund custodian and the recipient of the cash should sign the petty cash ticket.

C.

The sum of the petty cash tickets exceeds the imprest balance, indicating that the petty cash asset has not been properly safeguarded.

D.The fund custodian should not authorize petty cash tickets. Since

KM

authorized three of the four petty cash payments, a separation of duties issue exists.

E.

Petty cash ticket no. 47 does not indicate which account to debit on the actual ticket.

Requirement 2. Journalize the following transactions: (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.)

a. Establishment of the petty cash fund on

January

12,

2024.

Date			Accounts and Explanation	Debit	Credit
Jan. 12			Petty Cash	350
			Cash
			To open the petty cash fund.

b. Replenishment of the fund on

January

31,

2024.

Assume petty cash ticket no. 47 was issued for the purchase of office supplies. (Prepare a single compound journal entry.)

Date

Accounts and Explanation

Debit

Credit

Jan. 31

Requirement 3. What is the balance in the Petty Cash account immediately before replenishment? Immediately after replenishment?

The balance in the Petty Cash account immediately before replenishment is
The balance in the Petty Cash account immediately after replenishment is