Kael Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August. August 1 Established the petty cash fund by writing a check payable to the petty cash custodian for $200.August 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.August 16 Increased the amount of the petty cash fund to $400 by writing a check for $200.August 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:1) Journalize the petty cash transactions.2) Post to the Petty Cash account.3) What internal control features exist in a petty cash fund?

Answer and Explanation:

(a)Aug.1

Dr Petty Cash200.00

Cr Cash..200.00

Aug 15

Dr Freight-Out 74.40

Dr Entertainment Expense 36.00

Dr Postage Expense 33.70

Dr Miscellaneous Expense 27.50

Dr Cash Over and Short 3.40

Cr Cash 175.00

Aug 16

Dr Petty Cash 200.00

Cr Cash 200.00

Aug 31

Dr Postage Expense 145.00

Dr Entertainment Expense 90.60

Dr Freight-Out 46.40

Dr Cash Over and Short 1.00

Cr Cash 283.00

(b) Petty Cash

Aug 1 200

Aug 16 200

Aug 31 balance 400

c) The internal control features that exist in a petty cash fund is to ensure that documentation are properly maintained at every point in time and it must often show the details of disbursements that occurred or happened from the petty cash such as the date, name of payee, amount and purpose of disbursement and the petty cash must always be properly kept in a locked cash box in order to protect it from be carried away or from theft.

answer; i believe the correct answer is (75 years);

answer; engaging in effective public relations;