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QUESTION 2. (40 POINTS) DDE Co., a merchandising company, uses a petty cash fund system. The fund was established on June 1 with a balance
QUESTION 2. (40 POINTS) DDE Co., a merchandising company, uses a petty cash fund system. The fund was established on June 1 with a balance of $100. On June 15 the following cash receipts were found in the petty cash box along with an $8 cash balance. Date June 2 8 10 14 Receipt no. 00201 00202 00203 00204 Description Office Supplies Freight-In Travel expenses Miscellaneous Amount $25 15 40 14 The fund was replenished on Jun 15th. Required a) Journalize the entries in June that pertain to the operation of the petty cash fund (15 points) b) Explain how internal control principles are applied in a petty cash fund system (15 points) C) Explain what is a bank reconciliation and why is it needed. (10 points) Solution a) GENERAL JOURNAL DATE ACCOUNT TITLES DEBIT CREDIT June 1 June 15 b)
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