PRACTICE EXERCISE $2$

$($a$)$ Record the following transactions on a petty cash sheet. All petty cash vouchers will be numbered sequentially, beginning with #$1.$ Ask your instructor which of the following tax rates to use:

i$.$ No taxes

ii$.$ Add $5\%$ GST only

iii. Add $13\%$ HST

iv$.$ Add $5\%$ GST $+7\%$ PST

$20-$Nov.

$1$ The fund was started with $$200.$

$1$ Bought pads of writing paper for office, $$27\mathrm{.}70$

$3$ Paid for delivery of above stationery, $$5\mathrm{.}78$

$4$ Bought special order of merchandise, $$13\mathrm{.}14.$

$4$ Paid for delivery of the above special order of merchandise by courier, $$5\mathrm{.}25$

$5$ Bought sugar and cream for staff kitchen, $$4\mathrm{.}50($no taxes$).$

$6$ Paid for minor repairs to office furniture, $$18\mathrm{.}06.($Debit Repairs Expense$)$

$6$ Paid ABC Courier for delivering merchandise to customer, $$7\mathrm{.}35.$

$7$ Bought packaging materials for warehouse, $$28\mathrm{.}35.$

$10$ Paid for printing of advertising flyers, $$32\mathrm{.}55.$

$17$ Paid for delivery of incoming merchandise, $$11\mathrm{.}98.$

$21$ Contributed $$20$ to Heart & Stroke Foundation $($no taxes$).$

$($b$)$ Total all columns and prove equal debits and credits. Calculate the cash on hand.

$($c$)$ Make an entry in the Cash Payments Journal to establish the fund on November $1.$ Cheque #$130$ was issued.

$($d$)$ Make an entry in the Cash Payments Journal for the reimbursement of the fund on November $30.$ Cheque #$149$ was issued.