TEST 1 Name: Question 1: Stihl Repairs completed the following petty cash transactions during July 2021: July 5 Prepared a $500 cheque, cashed it, and turned the proceeds and the petty cash box over to Bob Stuart, the petty cashler. 6 Paid $108.00 COD charges on merchandise purchased for resale. Stihl Repairs uses the perpetual inventory method to account for merchandise inventory. 11 Paid $23.75 delivery charges on merchandise sold to a customer. 12 Purchased file folders, $8.50. 14 Reimbursed Collin Dodge. the manager of the business, $8.26 for office supplies purchased. 18 Purchased paper for printer, $12.15. 27 Paid $21.60 COD charges on merchandise purchased for resale. 28 Purchased stamps, $23.00 30 Reimbursed Collin Dodge $64.80 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 $233.94 In cash in the fund. In addition, the size of the petty cash fund was decreased to $300. 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 increase of the fund. Petty Cash Summary