Answer Happy

Halifax Fitness Consulting completed the following petty cash transactions during February 2020: Feb. 2 Prepared a $3,360 cheque, cashed it, and gave the proceeds and the petty cash box to Nick Reed, the petty cashier. 5 Purchased paper for the copier, $202. 9 Paid $350 COD charges on merchandise purchased for resale. Assume Halifax Fitness Consulting uses the perpetual met. account for merchandise inventory. 12 Paid $160 postage to express mail a contract to a client. 14 Reimbursed Kim Marin, the manager of the business, $1,388 for business auto expenses. 20 Purchased stationery, $613. 23 Paid a courier $15 to deliver merchandise sold to a customer. 25 Paid $38 COD charges on merchandise purchased for resale. 28 Paid $46 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 increas $7,500. Required: 1. Prepare a journal entry to record establishing the petty cash fund.

Required: 1. Prepare a journal entry to record establishing the petty cash fund. View transaction list View journal entry worksheet No 1 Date Feb. 2 Petty cash Cash General Journal Debit 3,360 Credit 3,360 G

ces 2. Prepare a summary of petty cash payments. Date Feb. 23 Feb. 14 Feb. 12 Feb. 28 Feb. 9 Feb. 25 HALIFAX FITNESS CONSULTING Petty Cash Payments Report Receipts Delivery expense Delivery of customer's merchandise Auto expense Reimbursement for business auto expense Postage expense Express delivery of contract Purchased stamps Transportation-in (Merchandise Inventory) COD charges on purchased merchandise COD charges on purchased merchandise + Amount $ Amount 0 0 0 0 Amount

Feb. 9 Feb. 25 Feb. 5 Feb. 20 Transportation-in (Merchandise Inventory) COD charges on purchased merchandise COD charges on purchased merchandise Office supplies Purchased paper for copier Purchased stationery Total receipts Fund total Equals: Cash required to replenish petty cash 0 0 0

Journal entry worksheet < 1 Record to reimburse fund and increase in fund. Note: Enter debits before credits. Date Feb. 28 General Journal Delivery expense Postage expense Merchandise inventory Auto expense Office supplies expense Cash over and short Cash Debit 25 Credit >