on july 1 2011 acton company established an imprest petty 266961

On July 1, 2011, Acton Company established an Imprest (petty cash) fund in the amount of $400.00 in cash from a check drawn for the purpose establishing the fund. On July 31, the petty cash fund has cash of $31.42 and the following receipts on hand: for merchandise received, $204.30; freight in, $65.74; laundry, service, $84.00; and miscellaneous expense, $14.54. A check was drawn to replenish the fund. On Aug. 31, the petty cash fund has cash of $55.00 and the following receipts on hand: merchandise, $196.84; freight in, $76.30; laundry service, $84.00; and miscellaneous expense, $7.86. The petty cash custodian is not able to account fix the excess cash in the fund. A check is drawn to replenish the fund.

Required

1. In journal form, prepare the entries necessary to record each of these transactions. The company uses the periodic inventory system.

2. What are two examples of why a local semiprofessional baseball team might have need for an imprest {petty cash} system?