On June $1,$ Meadow Salad Dressings creates a petty cash fund with an imprest balance of $$500.$ During June, Al Franklin, the fund custodian, signs the following petty cash tickets:

$($Click the icon to view the petty cash tickets.$)$

On June $30,$ prior to replenishment, the fund contains these tickets plus cash of $$220.$ The accounts affected by petty cash payments are Office Supplies, Travel Expense, Delivery Expense,

Entertainment Expense, and Merchandise Inventory.

Read the requirements.

Requirement $1.$ Explain the characteristics and the internal control features of an imprest fund.

An imprest fund has

balance at all times, which equals the sum of

plus the

that support payments from the fund. The internal control

feature of an imprest fund is that it

the amount of money for which the fund custodian is responsible.

Data table

Requirements

Explain the characteristics and the internal control features of an imprest fund.

On June $30,$ how much cash should the petty cash fund hold before it

is replenished?

Journalize all required entries to create the fund and replenish it$.$ Include

explanations.

Make the July $1$ entry to increase the fund balance to $$700.$ Include

an explanation, and briefly describe what the custodian does.