Blues Music Center had the following petty cash transactions in March of the current year. Blues uses the perpetual system to account for merchandise inventory.
Mar. 5 Wrote a $250 check to establish a petty cash fund.
6 Paid $12.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
11 Paid $10.75 in delivery expense on merchandise sold to a customer, terms FOB destination.
12 Purchased office file folders for $14.13 that are immediately used.
14 Reimbursed Bob Geldof, the manager, $11.65 for office supplies purchased and used.
18 Purchased office printer paper for $20.54 that is immediately used.
27 Paid $45.10 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
28 Paid postage expense of $18.
30 Reimbursed Geldof $56.80 for mileage expense.
31 Cash of $61.53 remained in the fund. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.
31 The petty cash fund amount is increased by $50 to a total of $300.

Required

1. Prepare the journal entry to establish the petty cash fund.

2. Prepare a petty cash payments report for March with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense.

3. Prepare the journal entries for part 2 to both

(a) Reimburse

(b) Increase the fund amount.