On November 1, Fab Salad Dressings creates a petty cash fund with an imprest balance of $400. During November, Sunny Lewis, the fund custodian, signs the following petty cash tickets:
| Petty Cash Ticket Number |
Item |
Amount |
| 101 |
Office supplies |
$29 |
| 102 |
Cab fare for executive |
15 |
| 103 |
Delivery of package across town |
25 |
| 104 |
Dinner money for city manager to entertain the mayor |
30 |
| 105 |
Inventory |
70 |
On November 30, prior to replenishment, the fund contains these tickets plus cash of $245. The accounts affected by petty cash payments are Offiice supplies expense, Travel expense, Delivery expens, Entertainment expense, and Inventory.
Requirements
1. Explain the characteristics and the internal control features of an imprest fund.
2. On november 30, how much cahs should the petty cahs fund hold before it is replenished?
3 Jounalize all required entries to create the fund and replenish it. include explanations
4 Make the December 1 entry to increase the fund balance to $450. Include an explanation, and brefly describe what the custodian does.