Question: Controlling and Accounting for Petty Cash Disbursements Harris town Hockey Club (HHC) maintains a petty cash fund for minor club expenditures. The petty cash custodian, Wayne Crosby, describes the events that occurred during the last two months:
a. I established the fund by cashing a check from HHC for $250 made payable to me.
b. Tom Canuck provided a $70 receipt for repairs to the club's computer, so I paid $70 cash to him.
c. Kim Harra provided a receipt for $50 for various supplies she had used to decorate the arena last month. I paid $50 cash to her.
d. Trainer Jim bought a bag of pucks that the club intends to use for the next few years. He gave me the receipt and I paid him $80.
e. On the last day of the month, I prepared a summary of expenditures and requested the fund be replenished. I received and cashed a check from HHC for $200, placing the cash into a locked cash box.
f. Wendy Wignes provided receipts for chips and sodas purchased for the club's entertainment event. I paid $125 cash to her.
g. Destiny Hook provided a phone bill showing she had paid $30 for calls made to contact referees for the annual tournament. I paid her $30 cash.
h. Gutty McTavish submitted a receipt for $35 for a haircut he received. I did not pay him.
i . I could not make it to the bank in time to take out money for the weekend, so I borrowed $50 from the petty cash box and will repay it next month.
j. On the last day of the month, I prepared a summary of expenditures and discovered that the petty cash fund was $10 short. After requesting that the fund be replenished, I received and cashed a check from HHC for $215, placing the cash into the locked cash box.
Required: 1. Prepare journal entries where required.
2. From the description of events, identify one control strength and one control weakness.