Response to the following questions:
1. Why are actual expenses, rather than the petty cash account, debited when the fund is replenished?
2. What is a bank reconciliation? List the causes of the difference between the cash balance listed on a company's bank statement and the balance shown in the company's cash account.
3. Why are adjusting entries made after the bank reconciliation is completed? Give an example of an item on a bank reconciliation that requires an adjusting entry.