The accounting system used by Dartmouth Sales and Service requires that all entries be journalized in a general journal. To facilitate payments for small items, Dartmouth established a petty cash fund. The following transactions involving the petty cash fund occurred during February 2023.

Feb. 3 A company cheque for $200 was prepared and made payable to the petty cashier to establish the petty cash fund.
14 A company cheque was prepared to replenish the fund for the following expenditures made since February 3 and to increase the fund to $250.
1. Purchased office supplies, $65.82.
2. Paid $75.00 COD charges on merchandise purchased for resale. Dartmouth uses the perpetual method to account for merchandise inventory.
3. Paid $36.40 to Data Services for minor repairs to a computer.
4. Paid $15.23 for postage expenses.
5. Discovered that only $5.55 remained in the petty cash box.
28 The petty cashier noted that $39.30 remained in the fund, and decided that the February 14 increase in the fund was not large enough. A company cheque was prepared to replenish the fund for the following expenditures made since February 14, and to increase it to $300.
6. Paid $45 to The Smart Saver for an advertisement in a monthly newsletter.
7. Paid $96.35 for office supplies.
8. Paid $69.35 to Best Movers for delivery of merchandise to a customer.

Required
Prepare general journal entries to record the establishment of the fund on February 3 and its replenishment on February 14 and February 28.

Analysis Component:
Explain how the company’s financial statements would be affected if the petty cash fund is not replenished and no entry is made on February 28.