Problem 7-2B Establishing, reimbursing, and increasing the petty cash fund 104 Baby 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. Baby 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 Bob Stuart 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 similar to Exhibit 7.3 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