Response to the following problem:
On June 1, Pixie Hospital established a petty cash fund in the imprest amount of $500. On June 14, the contents of the petty cash fund were as follows when the fund was reimbursed:
Coin and currency $22I
Petty cash expense vouchers 216
IOU from employee 10
Check of another employee made payable to Pixie Hospital 50
On June 16, the imprest amount of the petty cash fund was reduced to $300.
Required:
(1) Prepare the necessary entries in general journal form at June 1, 14, and 16.
(2) Why do you think the imprest amount of the petty cash fund was reduced on June 16?