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Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2 Prepared a $3,610 cheque, cashed it, and gave the proceeds and
Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2 Prepared a $3,610 cheque, cashed it, and gave the proceeds and the petty cash box to Nick Reed, the petty cashier. 5 Purchased paper for the copier, $217. 9 Paid $376 COD charges on merchandise purchased for resale. Assume Halifax Fitness Consulting uses the perpetual method to account for merchandise inventory. 12 Paid $172 postage to express mail a contract to a client. 14 Reimbursed Kim Marin, the manager of the business, $1,492 for business auto expenses. 20 Purchased stationery, $659. 23 Paid a courier $10 to deliver merchandise sold to a customer. 25 Paid $25 COD charges on merchandise purchased for resale. 28 Paid $30 for stamps. 28 Reed sorted the petty cash receipts by accounts affected and exchanged them for a cheque to reimburse the fund for expenditures. However, there was only $8 in cash in the fund. In addition, the size of the petty cash fund was increased to $8,200. Required: 1. Prepare a journal entry to record establishing the petty cash fund. View transaction list X Record the entry to establish the fund. 1 > Credit 2. Prepare a summary of petty cash payments. HALIFAX FITNESS CONSULTING Petty Cash Payments Report Receipts Amount Date Amount Amount Delivery expense Auto expense Postage expense Transportation-in (Merchandise Inventory) Office supplies Total receipts Fund total Equals: Cash required to replenish petty cash 3. Prepare the journal entry to record the reimbursement and the increase of the fund. View transaction list X 1 Record to reimburse fund and increase in fund. Credit Note : = journal entry has been entered Record entry Clear entry View general journal
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