Reed sorted the petty cash receipts by accounts affected and exchanged them for a cheque to reimburse the for expenditures. However, there was only $11 in cash in the fund. In addition, the size of the petty cash funds 2. Prepare a summary of petty cash payments, similar to Exhibit 7.3 that has these categories: deler pense, auto expense, postage expense, merchandise inventory, and office supplies. Sort the payments Problem 7-2A Establishing, reimbursing, and increasing the petty cash fund L04 Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2 Prepared a $360 cheque, cashed it, and gave the proceeds and the petty cash box to Nick Reed, the petty cashier. 5 Purchased paper for the copier, $22 Paid $38 COD charges on merchandise purchased for resale. Assume Halifax Fitness Consulting uses the perpetual method to account for merchandise inventory. 12 Paid $17 postage to express mail a contract to a client. 14 Reimbursed Kim Marin, the manager of the business, $148 for business auto expenses. 20 Purchased stationery, $65. 23 Paid a courier $8 to deliver merchandise sold to a customer. 25 Paid $20 COD charges on merchandise purchased for resale. 28 Paid $24 for stamps. 28 9 increased to $500. Required 1. Prepare a journal entry to record establishing the petty cash fund. the appropriate categories and total the expenditures in each category. 3. Prepare the journal entry to record the reimbursement and the increase of the fund. 514