Kael Company maintains a petty cash fund for small expenditures. These trans- actions occurred during the month of August.

Aug. 1 Established the petty cash fund by writing a check payable to the petty cash custodian for $200.

15 Replenished the petty cash fund by writing a check for $175. On this date, the fund consisted of $25 in cash and these petty cash receipts: freight-out $74.40, entertainment expense $36, postage expense $33.70, and miscellaneous expense $27.50.

16 Increased the amount of the petty cash fund to $400 by writing a check for $200.

31 Replenished the petty cash fund by writing a check for $283. On this date, the fund consisted of $117 in cash and these petty cash receipts: postage expense $145, entertainment expense $90.60, and freight-out $46.40.

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?