Question 4 (30 marks) Oceanside Care Centre created a petty cash fund with an imprest balance of $200 on June 01. The fund custodian authorized the following petty cash tickets in June: Ticket # 501 502 503 504 505 Item Retirement Gift Cab fare for retiree Office Supplies Delivery of Parcel Office Supplies Amount $ 100 30

17 12 27 On June 30, prior to replenishment, the fund contained the above tickets plus $10.00. The accounts affected by the petty cash payments were Retirement Expense, Office Supplies, and Delivery Expense. Required: a. Explain the characteristics and internal control of an imprest fund. b. On June 30, how much cash should the petty cash fund hold before it is refilled? c. Record journal entries to the following. Be sure to include explanations. 1. Create the fund I 11. Refill the fund d. Record the July 01 journal entry to increase the petty cash fund balance to $400.

Oceanside Care Centre created a petty cash fund with an imprest balance of $200 on June 01. The fund custodian authorized the following petty cash tickets in June: On June 30 , prior to replenishment, the fund contained the above tickets plus $10.00. The accounts affected by the petty cash payments were Retirement Expense, Office Supplies, and Delivery Expense. Required: a. Explain the characteristics and interilal control of an imprest fund b. On June 30 , how much cash should the petty cash fund hold before it is refilled? c. Record journal entries to the following. Be sure to include explanations. i. Create the fund ii. Refill the fund d. Record the July 01 journal entry to increase the petty cash fund balance to $400. Provide an explanation, and, in a few words, discuss what the custodian did