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Problem 7-2A Establishing, reimbursing, and increasing the petty cash fund L04 Halfox Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2

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Problem 7-2A Establishing, reimbursing, and increasing the petty cash fund L04 Halfox Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2 Prepared a $5,130 cheque, cashed it, and gave the proceeds and the petty cash box to Nick Roed, the petty cashier 5 Purchased paper for the copler, 5307, 9 paid $532 coo changes on merchandise purchased for resale. Assume Halifax Fitness Consulting uses the perpetual method to account for merchandise inventory, 12 Paid $244 postage to express mail a contract to a client. 14 Reinbursed Kim Marin, the manager of the business, $2,116 for business auto expenses. 20 Purchased stationery. $935. 23. Pald a courier $16 to deliver merchandise sold to a customer. 25 Paid $28 COD charges on merchandise purchased for resale. 28 Paid $34 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 $16 in cath in the fund. In addition, the size of the petty cash fund was increased to $12,400. Required: 1. Prepare a journal entry to record establishing the petty cash fund. View transaction list Journal entry worksheet > 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 Record entry Clear entry View general Journal 2. Prepare a summary of petty cash payments. HALIFAX FITNESS CONSULTING Petty Cash Payments Report Receipts Amount Date Amount Amount Delivery expense $ 0 Auto expense 0 Postage expense 0 Transportation in (Merchandise Inventory) 0 Office supplies 0 $ 0 Total receipts Fund total Equals Cashed to spetty cash 3. Prepare the journal entry to record the teimbursement and the increase of the fund. View transaction in Journal entry worksheet Record to reimburse fund and increase in fund. otette de bolets General Journal Debit Credit Date Feb 28

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