Harristown 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 planned to use to decorate the arena later this year. I paid $ 50 cash to her.
d. Trainer Jim bought some equipment 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 supplies purchased for the club’s office for use next month. I paid $ 125 cash to her.
g. Destiny Hook provided a phone bill showing she had paid $ 30 for telephone 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. On the last day of the month, I received and cashed a check from HHC for $ 155, placing the cash into the locked cash box.
Required:
1. Prepare journal entries where required.
2. If HHC has $ 1,000 cash, $ 500 of government Treasury bills purchased four months ago, and $ 750 of cash set aside for its workers’ compensation insurance, how much will the company report on the balance sheet as “Cash and Cash Equivalents”?