Halifax Fitness Consulting completed the following petty cash transactions during February $2023$:

Feb. $2$ Prepared a $$3,610$ cheque, cashed it$,$ and gave the proceeds and the petty cash box to Nick Reed, the petty cashier.

$5$ Purchased paper for the copier, $$217.$

$9$ Paid $$376$ COD charges on merchandise purchased for resale. Assume Halifax Fitness Consulting uses the perpetual method to account for merchandise inventory.

$12$ Paid $$172$ postage to express mail a contract to a client.

$14$ Reimbursed Kim Marin, the manager of the business, $$1,492$ for business auto expenses.

$20$ Purchased stationery, $$659.$

$23$ Paid a courier $$10$ to deliver merchandise sold to a customer.

$25$ Paid $$25$ COD charges on merchandise purchased for resale.

$28$ Paid $$30$ 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 $$8$ in cash in the fund. In addition, the size of the petty cash fund was increased to $$8,200.$

Required:

$1.$ Prepare a journal entry to record establishing the petty cash fund.

$2.$ Prepare a summary of petty cash payments.

$3.$ Prepare the journal entry to record the reimbursement and the increase of the fund.

Answer rating: 100% (QA)

1 Journal entry to record establishing the petty cash fund Feb 2 2023 Petty Cash Fund 361000 C... View the full answer