Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Required 1. Prepare a journal

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Halifax Fitness Consulting completed the following petty cash transactions during February 2020:

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Required

1. Prepare a journal entry to record establishing the petty cash fund.

2. Prepare a summary of petty cash payments, similar to Exhibit 7.3 that has these categories: delivery expense, auto expense, postage expense, merchandise inventory, and office supplies. Sort the payments into the appropriate categories and total the expenditures in each category.

3. Prepare the journal entry to record the reimbursement and the increase of the fund.

Analysis Component: One of your responsibilities as an employee with Halifax Fitness is to handle the petty cash fund. You are concerned about the auto expense claims made regularly by Kim Marin, the manager who hired you: Kim tells you how much the expenditures are and you give her the cash out of petty cash. Kim has never given you receipts to substantiate her claims. The owner of the business is visiting and asks you how things are going. What should you do, if anything? Explain.

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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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