Valley Hardware (Mr. M. Jordan is the sole proprietor) established a petty cash fund on January 1, 2018. A cheque for $500 payable to cash was given to Kate, the petty cashier, who went to the bank and brought back $500 and put it in the petty cash box. The following transactions were completed during January.

Jan 1 Purchased file folders for $26 (this business records office supplies as expenses upon purchase)

Jan 10 Paid $40 for cleaning services due to a paint spill on the hallway carpet

Jan 15 Paid $52 COD charges on merchandise to be resold to customers (the business uses the perpetual inventory system)

Jan 15 Purchased pens and pencils for office use, $17

Jan 20 Paid $45 for an advertisement in the local January newspaper

Jan 25 M. Jordan took $70 from the cash box to buy personal groceries on the way home from work

Jan 26 Paid a courier $40 delivery charges on merchandise inventory sold to a customer

Jan 28 Paid $96 for a business lunch with some hardware suppliers.

The money in the petty cash box was counted on January 31, and its total was $117. The fund was replenished and decreased by $100 on January 31.

REQUIRED: (20 MARKS)