On 1 June 2020, Sims Company established a petty cash fund for its sales department by cashing a check for $100.

During June, the petty cash receipts are as follows:

Date	Transaction
4 June	Stamp inventory, $10
15 June	Miscellaneous expense, $15
20 June	Freight-out, $20
28 June	Office supplies $8

The fund was replenished on 30 June 2020, and the amount left in the fund contained $45.

On 1 July, the company decided to increase the size of the fund to $120.

Required:

1. Prepare journal entries to record transactions during June 1 to July 1.
2. List and briefly discuss the three major components of the fraud triangle.
3. Use an appropriate example to explain why separation of duties is often describes as the cornerstone of internal control for safeguard assets.