Arial Company maintains a petty cash fund for small expenditures (Solution USE as guide )

Arial Company 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 Coulter Bank for $200.

15 Replenished the petty cash fund by writing a check for $198.00. On this date the fund consisted of $2.00 in cash and the following petty cash receipts: freight-out $87.00, postage expense $51.40, entertainment expense $46.60 and miscellaneous expense $11.20.

31 Replenished the petty cash fund by writing a check for $192.00. At this date, the fund consisted of $8.00 in cash and the following petty cash receipts: freight-out $82.10, charitable contributions expense $45.00, postage expense $25.50 and miscellaneous expense $39.40.

Aug. 15 Replenished the petty cash fund by writing a check for $187.00. On this date, the fund consisted of $13.00 in cash and the following petty cash receipts: freight-out $75.60, entertainment expense $43.00, postage expense $33.00 and miscellaneous expense $37.00.

16 Increased the amount of the petty cash fund to $300 by writing a check for $100.

31 Replenished petty cash fund by writing a check for $277.00. On this date, the fund consisted of $23 in cash and the following petty cash receipts: postage expense $133.00, travel expense $95.60, and freight-out $47.10.

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?