Halifax Fitness Consulting completed the following petty

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.

9 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 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. (Round your answers to 2 decimal places.)

3. Prepare the journal entry to record the reimbursement and the increase of the fund. (Round your answers to 2 decimal places.)
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