Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2 Prepared a $3,860 cheque, cashed it, and gave the proceeds and the petty cash box to Nick Reed, the petty cashier. 5 Purchased paper for the copier, $232. 9 Paid $402 COD charges on merchandise purchased for resale. Assume Halifax Fitness Consulting uses the perpetual method to account for merchandise inventory. 12 Paid $184 postage to express mail a contract to a client. 14 Reimbursed Kim Marin, the manager of the business, $1,596 for business auto expenses. 20 Purchased stationery, $705. 23 Paid a courier $11 to deliver merchandise sold to a customer. 25 Paid $15 COD charges on merchandise purchased for resale. 28 Paid $18 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 $8,900. Required: 1. Prepare a journal entry to record establishing the petty cash fund. Required: 1. Prepare a journal entry to record establishing the petty cash fund. View transaction list Journal entry worksheet 1 Record the entry to establish the fund. Note: Enter debits before credits. Date General Journal Debit Credit Feb. 2 Petty cash 3,860 Cash 3,860 Record entry Clear entry View general journal > 2. Prepare a summary of petty cash payments. HALIFAX FITNESS CONSULTING Petty Cash Payments Report Date Receipts Delivery expense Feb. 23 Delivery of customer's merchandise Amount Amount Amount $ 11 $ 11 Auto expense Feb. 14 Reimbursement for business auto expense $ 1,596 1,596 Postage expense Feb. 12 Express delivery of contract Feb. 28 Purchased stamps 184 18 202 Transportation-in (Merchandise Inventory) Feb. 9 Feb. 25 COD charges on purchased merchandise COD charges on purchased merchandise $ 402 15 417 Feb. 5 Feb. 20 Office supplies Purchased paper for copier Purchased stationery Total receipts 232 705 937 $ 3,163 Feb. 9 Feb. 25 Feb. 5 Feb. 20 Transportation-in (Merchandise Inventory) COD charges on purchased merchandise COD charges on purchased merchandise Office supplies Purchased paper for copier Purchased stationery Total receipts 402 26 15 Fund total Add: Cash remaining Equals: Cash required to replenish petty cash Cash short 417 $ 232 705 937 $ 3,163 $ 3,860 8 $ 3,852 $ 689 1 Record to reimburse fund and increase in fund. Note: Enter debits before credits. Date Feb. 28 General Journal Debit Credit Auto expense Delivery expense Office supplies expense Postage expense Merchandise inventory Petty cash Cash over and short Cash Record entry Clear entry View general journal >