P10 Imprest (petty cash) Fund Transactions (July 31: credit to cash; $737.16)

P10. On July 1, 2014, Acting Company established an imprest (petty Cash) fund in the amount of $800.00 in cash from a check drawn for the purpose of establishing the fund. On July 31 the petty cash fund has cash of $62.84 and the following receipts on hand: for merchandise received, $408.60, freight-in, $131.48; laundry service, $168.00; and miscellaneous expense, $29.08. A check was drawn to replenish the fund.

On August 31, the petty cash fund has cash of $110.00 and the following receipts on hand: merchandise, $393.68; freight-in, $152.60; laundry service, $168.00; and miscellaneous expense, $15.72. the petty cash custodian is not able to account for the excess cash in the fund. A check is drawn to replenish the fund.

REQUIRED

1. Prepare the journal entries necessary to record each of these transactions. The company uses the periodic inventory system.
2. ACCOUNTING CONNECTION= What are two examples of why a local semiprofessional baseball team might need for an imprest (petty cash) system ?