Requirements:

1.	Explain the characteristics and the internal control features of an imprest fund.
2.	On June 30, how much cash should the petty cash fund hold before it is replenished?
3.	Journalize all required entries to create the fund and replenish it. Include explanations.
4.	Make the July 1 entry to increase the fund balance to $650. Include an explanation, and briefly describe what the custodian does.

On June 1, Meadow Salad Dressings creates a petty cash fund with an imprest balance of $500. During June, Jackson Demers, the fund custodian, signs the following petty cash tickets:

Petty Cash Ticket Number	Item	Amount
Ticket No. 101	Office supplies	$35
Ticket No. 102	Cab fare for executive	20
Ticket No. 103	Delivery of package across town	50
Ticket No. 104	Business dinner	70
Ticket No. 105	Merchandise inventory	80

On June 30, prior to replenishment, the fund contains these tickets plus cash of $275. The accounts affected by petty cash payments are Office Supplies, Travel Expense, Delivery Expense, Entertainment Expense, and Merchandise Inventory.