P-F:7-26A Accounting for petty cash transactions

P-F:7-26A Accounting for petty cash transactions (Learning Objective 4) On June 1, Fab Salad Dressings creates a petty cash fund with an imprest balance of $300. During June, Al Franklin, the fund custodian, signs the following petty cash tickets: Petty Cash Ticket Number Amount $ 30 20 101 102 103 104 105 Item Office supplies Cab fare for executive Delivery of package across town Business dinner Merchandise inventory 50 40 90 On June 30, prior to replenishment, the fund contains these tickets plus cash of $90. The accounts affected by petty cash payments are Office Supplies, Travel Expense, Delivery Expense, Entertainment Expense, and Merchandise Inventory. Requirements 1. Explain the characteristics and the internal control features of an imprest fund. 2. On June 30, how much cash should the petty cash fund hold before it is replenished? 3. Journalize all required entries to create the fund and replenish it. Include explanations