I was wondering if you could help me with Problem 7-2A Chapter 7 in the book fundamental accounting principles.

erhead no matter what! Bill decides to raise the D e Lproperty insurance from $5,000 to $10,000. This cuts the property insur dedu remium in half. In a related move, he decid Spmber 15 but aot recorded by the compar a waste of money since the lI saves the entire amount of the b es that bonding of the plant's employeea is re- ompang has not experienced any losses due to employee then. d on Septeztiber 8. onding i premium by dropping the bonding Young records all incoming customer cash receipts for her employer and a atherine to their accounts. customer payments to their the so posts but charyed against the company's account nd transfer received in the bank but not nd transfer in ltem 10. 1-2A Establishing, reimbursing, and Increasing the petty cash fund LoA rblting completed the ftollowing pety cash transactions during February 2017 Milon Frepared a $400 cheque, cashed it, and gave the proceeds and the pettj cash box ta Nick Rreed. d cleared by the bank; not recorded by the Purchased paper for the copier, $22.45 q Paid $36.80 Coo charpes on merchand se purchased for resale, Assume Millon Consalting uses the perpetual mietnod to account for movchandse inventony 12 Paid $15.65 postege to express mail a contract to B atient, 1Reimbursed Kirn Marn, the manager or the businoss. $136.00 for business suta espenses 20 Purchased stationery, $58.70 Case Y Case Z Case X Paid a courler $32.45 to deliver merchandse sold to a customer 25 Paid $37.80 COD charges on merchandise purcheser for resala. 28 Paid $50.00 far stamps. 28 s 800 910 $1,100 500 800 4,000 Reed sorted the petty cash reoaipts by accounts affected and exchanged them for a cheque to reimaurse tne rund for expenditures. However, there was cnly $8.15 in cash in the fund. In aodintion, the siae of the petty fund was intreased to $500 2.000 1,000 $4.000 $3.500 $7.300 $2.200 $1,100 $3.650 Required 1. Prepare a journal entry to record establishing the pety cash fund 2. Prepare a summary of petty cash payments, similar to Exhibit 8.2 that has these categories: term obligations most easily? Explain your delivery expense, auto expense, postage expense, merchandise inventory, and office supplies. Sort the payments into the appropriate categories and total the expenditures in each category . Prepare the journal entry to record the reimbursement and the increase of the fund. Analysis Component: One of your responsibilities as an employee with Milton Consulting is to handle the ty cash fund. You are concerned about the auto expense claims made regularly by Kim Marn, the man- rnal control that is violated. Next, make a adherence to principles of internal control. ours. Normally Jill is the petty cash cus- ager who hired you: Kim tells you how much the expenditures were and you give her the cash out of etty cash. Kim has never gi isiting and asks you how things are going. What should you do, if anything? Explain. ven you receipts to substantiate her claims. The owner of the business is 9 h, Joan fills in as custodian. Pg Dn 6 503 3 0 Alt Alt