Question
Halifax Fitness Consulting completed the following petty cash transactions during February 2023: Feb. 2 Prepared a $5,860 cheque, cashed it, and gave the proceeds and
Halifax Fitness Consulting completed the following petty cash transactions during February 2023: Feb. 2 Prepared a $5,860 cheque, cashed it, and gave the proceeds and the petty cash box to Nick Reed, the petty cashier. 5 Purchased paper for the copier, $352. 9 Paid $610 COD charges on merchandise purchased for resale. Assume Halifax Fitness Consulting uses the perpetual method to account for merchandise inventory. 12 Paid $280 postage to express mail a contract to a client. 14 Reimbursed Kim Marin, the manager of the business, $2,428 for business auto expenses. 20 Purchased stationery, $1,073. 23 Paid a courier $19 to deliver merchandise sold to a customer. 25 Paid $38 COD charges on merchandise purchased for resale. 28 Paid $46 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 $21 in cash in the fund. In addition, the size of the petty cash fund was increased to $14,500.
Required: 1. Prepare a journal entry to record establishing the petty cash fund
2. prepare a summary of petty cash payments
3. Prepare the journal entry to record the reimbursement and the increase of the fund
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