Identify as many internal control weaknesses as you can in this scenario, and suggest how each could be addressed.

Journalize and post petty cash fund transactions.

P$7\mathrm{.}3($LO $2),$ AP Kael Company maintains a petty cash fund for small expenditures. These transactions 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 $$74\mathrm{.}40,$ entertainment expense $$36,$ postage expense $$33\mathrm{.}70,$ and miscellaneous expense $$27\mathrm{.}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\mathrm{.}60,$ and freight$-$out $$46\mathrm{.}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?