Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2 Prepared a $5,368 cheque, cashed it, and gave the proceeds and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2 Prepared a $5,368 cheque, cashed it, and gave the proceeds and the petty cash box to Nick Reed, the petty cashier. paid $558 cod charges on merchandise purchased for resale. Assume Halifax Fitness Consulting uses the perpetual method to account for merchandise Inventory. 12 Paid $256 postage to express mail contract to a client. 14 Reimbursed Kin Marin, the manager of the business, 52,220 for business auto expenses. 20 Purchased stationery, $981. 23 Paid a courier $17 to deliver merchandise sold to a customer. 25 paid $30 COD charges on merchandise purchased for resale. 28 Paid $36 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 $17 in cash in the fund. In addition, the size of the petty cash fund was increased to $13, 100. Required: 1. Prepare a journal entry to record establishing the petty cash fund. View transaction list Journal entry worksheet > Record the entry to establish the fund. Note: Enter debits before credits. General Journal Debit Credit Date Feb. 2 2. Prepare a summary of petty cash payments. HALIFAX FITNESS CONSULTING Petty Cash Payments Report Receipts Amount Date Amount Amount Delivery expense $ Auto expense 0 Postage expense Transportation-in (Merchandise Inventory) 0 Office supplies Office supplies 0 S 0 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 Journal entry worksheet Record to reimburse fund and increase in fund. Note: Enter debits before credits Date General Journal Debit Credit Feb. 28

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Connect For Payroll Accounting 2020

Authors: Jeanette Landin

6th Edition

1260943895, 9781260943894

More Books

Students also viewed these Accounting questions

Question

What are the core functions of the universitys HRM department?

Answered: 1 week ago

Question

Identify a set of competencies for tenured faculty

Answered: 1 week ago