Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2 Prepared a...

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Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2 Prepared a $5,110 cheque, cashed it, and gave the proceeds and the petty cash box to Nick Reed, the petty cashier. 5 Purchased paper for the copier, $307. 9 Paid $532 COD charges on merchandise purchased for resale. Assume Halifax Fitness Consulting uses the perpetual method to account for merchandise inventory. 12 Paid $244 postage to express mail a contract to a client. 14 Reimbursed Kim Marin, the manager of the business, $2,116 for business auto expenses. 20 Purchased stationery, $935. 23 Paid a courier $16 to deliver merchandise sold to a customer. 25 Paid $28 COD charges on merchandise purchased for resale. 28 Paid $34 for stamps. 28 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 $16 in cash in the fund. In addition, the size of the petty cash fund was increased to $12,400. Required: 1. Prepare a journal entry to record establishing the petty cash fund. Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2 Prepared a $5,110 cheque, cashed it, and gave the proceeds and the petty cash box to Nick Reed, the petty cashier. 5 Purchased paper for the copier, $307. 9 Paid $532 COD charges on merchandise purchased for resale. Assume Halifax Fitness Consulting uses the perpetual method to account for merchandise inventory. 12 Paid $244 postage to express mail a contract to a client. 14 Reimbursed Kim Marin, the manager of the business, $2,116 for business auto expenses. 20 Purchased stationery, $935. 23 Paid a courier $16 to deliver merchandise sold to a customer. 25 Paid $28 COD charges on merchandise purchased for resale. 28 Paid $34 for stamps. 28 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 $16 in cash in the fund. In addition, the size of the petty cash fund was increased to $12,400. Required: 1. Prepare a journal entry to record establishing the petty cash fund.

Answer rating: 100% (QA)

To establish a petty cash fund the following journal entry is recorded Date Account Debit Credit Feb 2 Petty Cash Fund 5110 Cash 5110 Explanation On February 2 the company prepared a cheque for 5110 c... View the full answer