De Smet SA maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-month period.
July 1 Established petty cash fund by writing a check on Star Bank for €100.
15 Replenished the petty cash fund by writing a check for €94.90. On this date, the fund consisted of €5.10 in cash and the following petty cash receipts: freight-out €51.00, postage expense €20.50, entertainment expense €23.10, and miscellaneous expense €4.10.
31 Replenished the petty cash fund by writing a check for €92.90. At this date, the fund consisted of €7.10 in cash and the following petty cash receipts: freight out €43.50, charitable contributions expense €20.00, postage expense €20.10, and miscellaneous expense €9.30.
Aug. 15 Replenished the petty cash fund by writing a check for €98.00. On this date, the fund consisted of €2.00 in cash and the following petty cash receipts: freight-out €40.20, entertainment expense €21.00, postage expense €14.00, and miscellaneous expense €19.80.
16 Increased the amount of the petty cash fund to €150 by writing a check for €50.
31 Replenished the petty cash fund by writing a check for €137.00. On this date, the fund consisted of €13 in cash and the following petty cash receipts: freight out €74.00, entertainment expense €43.20, and postage expense €17.70.
Instructions
(a) Journalize the petty cash transactions.
(b) Post to the Petty Cash account.
(c) What internal control features exist in a petty cash fund?