Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2 Prepared a $1,61
Posted: Thu May 19, 2022 2:56 pm
Halifax Fitness Consulting completed the following petty cash
transactions during February 2020: Feb. 2 Prepared a $1,610 cheque,
cashed it, and gave the proceeds and the petty cash box to Nick
Reed, the petty cashier. 5 Purchased paper for the copier, $97. 9
Paid $168 COD charges on merchandise purchased for resale. Assume
Halifax Fitness Consulting uses the perpetual method to account for
merchandise inventory. 12 Paid $76 postage to express mail a
contract to a client. 14 Reimbursed Kim Marin, the manager of the
business, $660 for business auto expenses. 20 Purchased stationery,
$291. 23 Paid a courier $30 to deliver merchandise sold to a
customer. 25 Paid $75 COD charges on merchandise purchased for
resale. 28 Paid $90 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 $2,600.
Prepare a summary of petty cash payments.
3. Prepare the journal entry to record the
reimbursement and the increase of the fund.
transactions during February 2020: Feb. 2 Prepared a $1,610 cheque,
cashed it, and gave the proceeds and the petty cash box to Nick
Reed, the petty cashier. 5 Purchased paper for the copier, $97. 9
Paid $168 COD charges on merchandise purchased for resale. Assume
Halifax Fitness Consulting uses the perpetual method to account for
merchandise inventory. 12 Paid $76 postage to express mail a
contract to a client. 14 Reimbursed Kim Marin, the manager of the
business, $660 for business auto expenses. 20 Purchased stationery,
$291. 23 Paid a courier $30 to deliver merchandise sold to a
customer. 25 Paid $75 COD charges on merchandise purchased for
resale. 28 Paid $90 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 $2,600.
Prepare a summary of petty cash payments.
3. Prepare the journal entry to record the
reimbursement and the increase of the fund.