Complete problem 7-2 A on page 514 and answer the following questions. What were the total receipts recorded on the Petty Cash Payment Report at Feb 28th? Choose... What is the fund total? Choose... What amount of cash is remaining at Feb 28th before replenishing the petty cash? Choose... How much cash is required to replenish the petty cash at Feb 28th? Choose... What is the cash over/short amount? Choose... Problem 7-2A Establishing, reimbursing, and increasing the petty cash fund 104 Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 12 14 20 23 25 28 28 2. Prepared a 5360 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 9 Paid $38 COD charges on merchandise purchased for resale. Assume Halifax Fitness Consulting uses the perpetual method to account for merchandise inventory. Paid $17 postage to express mail a contract to a client Reimbursed Kim Marin, the manager of the business, $148 for business auto expenses. Purchased stationery, $65. Paid a courier $8 to deliver merchandise sold to a customer. Pald $20 COD charges on merchandise purchased for resale. Paid $24 for stamps 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 $11 in cash in the fund. In addition, the size of the petty cash fund was increased to $500 Required 1. Prepare a 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 ex- pense, auto expense, postage expense, merchandise inventory, and office supplies. Sort the payments into 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 CHAPTER 7 Internal Control and Cash Analysis Component: One of your responsibilities as an employee with Halifax Fitness is to handle the petty cash fund. You are concerned about the auto expense claims made regularly by Kim Marin, the manager who hired you: Kim tells you how much the expenditures are and you give her the cash out of petty cash. Kim has never given you receipts to substantiate her claims. The owner of the business is visiting and asks you how things are going. What should you do, if anything? Explain