On June 1, Valley Salad Dressings creates a petty cash fund with an imprest balance of $400. During June, Sunny Lewis, the fund custodian, signs the following petty cash tickets: (Click the icon to view the petty cash tickets.) On June 30, price to replenishment, the fund contains these tickets plus cash of $105. 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 the same balance at all times, which equals the sum of cash in the fund plus the total of the tickets that support payments from the fund. The internal control feature of an imprest fund is that it clearly identifies the amount of money for which the fund custodian is responsible Requirement 2. On June 30, how much cash should the petty cash fund hold before it is replenished? Before it is replenished, the petty cash fund should hold cash of 80 Requirement 3. Joumalize all required entries to create the fund and replenish it. Include explanations, (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the creation of the fund. Date Accounts and Explanation June 1 Potty Cash 400 Data Table Cash 400 Debit Credit Amount $ 55 Petty Cash Ticket Number 101 102 103 104 105 To open the petty cash fund Journalize the replenishment of the fund. (Prepare a single compound joumal entry) Date Accounts and Explanation Debit Credit June 30 Onion Supplies 55 Travel Expense 25 Delivery Expense 50 Entertainment Expense 70 Merchandise Inventory 120 Cash Short and Over Item Office supplies Cab fare for executive Delivery of package across town Business dinner Merchandise inventory 25 50 70 120 Print Done Cash