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Halifax Fitness Consulting completed the following petty cash transactions during February 2023: Feb.2Prepared a $3,860 cheque, cashed it, and gave the proceeds and the petty
Halifax Fitness Consulting completed the following petty cash transactions during February 2023:
Feb.2Prepared a $3,860 cheque, cashed it, and gave the proceeds and the petty cash box to Nick Reed, the petty cashier. 5Purchased paper for the copier, $232. 9Paid $402 COD charges on merchandise purchased for resale. Assume Halifax Fitness Consulting uses the perpetual method to account for merchandise inventory. 12Paid $184 postage to express mail a contract to a client. 14Reimbursed Kim Marin, the manager of the business, $1,596 for business auto expenses. 20Purchased stationery, $705. 23Paid a courier $11 to deliver merchandise sold to a customer. 25Paid $15 COD charges on merchandise purchased for resale. 28Paid $18 for stamps. 28Reed 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.
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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