1. Journalize the entries to record the following:
a. Cheque No. 732 is issued to establish a petty cash fund of $800.
b. The amount of cash in the petty cash fund is now $294. Cheque No. 857 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $295; miscellaneous selling expense, $120; miscellaneous administrative expense, $91.
2. Discuss the advantages and disadvantages of maintaining a large petty cash fund.