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 2020.

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. (Hint: The amount of Office Supplies that appears on a balance sheet is determined by a physical count of the supplies on hand.)

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A company cheque for $200 was prepared and made payable to the petty cashier to establish the petty cash fund. Feb. A company cheque was prepared to replenish the fund for the following expenditures made since February 3 and 14 to increase the fund to $250. a. Purchased office supplies, $65.82. b. Paid $75.00 COD charges on merchandise purchased for resale. Dartmouth uses the perpetual method to account for merchandise inventory. c. Paid $36.40 to Data Services for minor repairs to a computer. d. Paid $15.23 for postage expenses. e. Discovered that only $5.55 remained in the petty cash box. The petty cashier noted that $39.30 remained in the fund, and decided that the February 14 increase in the fund 28 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. f. Paid $45 to The Smart Saver for an advertisement in a monthly newsletter. Paid $96.35 for office supplies. g. Paid $69.35 to Best Movers for delivery of merchandise to a customer. h.