Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2 Prepared a $360
Question:
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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Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver