2 Book rint rences Nakashima Gallery had the following petty cash transactions in February of the current year Nakashima uses the perpetual system to account for merchandise inventory February 2 Wrote a 350 check to establish a petty cash fund February 5 Purchased paper for the copier for 14 35 that is immediately used February 9 Paid 40 50 shipping charges transportation in on merchandise purchased for resale terms FOB shipping point These costs are added to merchandise inventory February 12 Paid 8 75 postage to deliver a contract to a client February 14 Reimbursed Adina Sharon the manager 72 for mileage on her car February 20 Purchased office paper for 69 77 that is immediately used February 23 February 25 Check my work Paid a courier 24 to deliver merchandise sold to a customer terms FOB destination Paid 10 30 shipping charges transportation in on merchandise purchased for resale terms FOB shipping point These costs are added merchandise inventory Paid 59 for postage expenses The fund had 26 34 remaining in the petty cashbox Sorted the petty cash receipts by accounts affected and exchanged them for check to reimburse the fund for expenditures February 28 The petty cash fund amount is increased by 100 to a total of 450 Required 1 Prepare the journal entry to establish the petty cash fund 2 Prepare a petty cash payments report for February with these categories delivery expense mileage expense postage merchandise inventory for transportation in and office supplies expense 3 Prepare the journal entries for required 2 to both a reimburse and b increase the fund amount February 27 February 28