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Milton Consulting completed the following petty cash transactions during February 2014: Feb. 2 Prepared...

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Accounting

Milton Consulting completed the following petty cash transactions during February 2014:

Feb. 2 Prepared a $500 cheque, cashed it, and gave the proceeds and the petty cash box to Nick Reed, the petty cashier.

5 Purchased paper for the copier, $32.

9 Paid $56 COD charges on merchandise purchased for resale. Assume Milton Consulting uses the perpetual method to account for merchandise inventory.

12 Paid $25 postage to express mail a contract to a client.

14 Reimbursed Kim Marn, the manager of the business, $219 for business auto expenses.

20 Purchased stationery, $96.

23 Paid a courier $15 to deliver merchandise sold to a customer.

25 Paid $19 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 $8 in cash in the fund. In addition, the size of the petty cash fund was increased to $620.

Required:

1.Prepare a journal entry to record establishing the petty cash fund. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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