Bacardi Company established a $150 petty cash fund with Dean Martin as the petty cashier. When the fund balance reached $19 cash, Martin prepared a petty cash payment report, which follows.
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Petty Cash Payments Report |
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|
Receipt No. |
Account Charged |
|
Approved by |
Received by |
|
12 |
Delivery Expense |
$ 29 |
Martin |
A. Smirnoff |
|
13 |
Merchandise Inventory |
18 |
Martin |
J. Daniels |
|
15 |
(Omitted) |
32 |
Martin |
C. Carlsberg |
|
16 |
Miscellaneous Expense |
41 |
(Omitted) |
J. Walker |
|
|
Total |
$120 |
|
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Required
1. Identify four internal control weaknesses from the payment report.
2. Prepare general journal entries to record:
a. Establishment of the petty cash fund.
b. Reimbursement of the fund. (Assume for this part only that petty cash receipt no. 15 was issued for miscellaneous expenses.)
3. What is the Petty Cash account balance immediately before reimbursement? Immediately after reimbursement?