Long Photography completed the following petty cash transactions during July 2020:

July 5 Prepared a $500 cheque, cashed it, and turned the proceeds and the petty cash box over to Bob Stuart, the petty cashier.

6 Paid $46 COD charges on merchandise purchased for resale. Long Photography uses the perpetual inventory method to account for merchandise inventory.

11 Paid $26 delivery charges on merchandise sold to a customer.

12 Purchased file folders, $76

18 Purchased paper for printer, $27

27 Paid $31 COD charges on merchandise purchased for resale.

28 Purchased stamps, $60.

30 Reimbursed Collin Dodge $134 for business car expenses.

31 Shelly Long sorted the petty cash receipts by accounts affected and exchanged them for a cheque to reimburse the fund for expenditures. However, there was $88 in cash in the fund. In addition, the size of the petty cash fund was decreased to $400.

Required:

1. Prepare a general journal entry to record establishing the petty cash fund.
2. Prepare a summary of petty cash payments that has these categories; delivery expense, auto expense, postage expense, merchandise inventory, and office supplies.
3. Prepare the general journal entry to record the reimbursement and the decrease of the fund.