9:18 Problem 6-3A (Algo) Establishing, reimbursing, and increasing petty cash LO P2 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 $360 check to establish a petty cash fund. February 5 Purchased paper for the copier for $16.55 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 $8.45 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 Paid a courier $16 to deliver merchandise sold to a customer, terms FOB destination. February 25 Paid $10.40 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. February 27 Paid $55 for postage expenses. February 28 The fund had $22.95 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures. February 28 The petty cash fund amount is increased by $110 to a total of $470. 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 expense, 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. Complete this question by entering your answers in the tabs below. < Prev 1 of 3 Next > hp Help Save & Required information Problem 6-4A (Algo) Preparing a bank reconciliation and recording entries LO P3 [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $25,639 debit balance, but its July bank statement shows a $26,923 cash balance. b. Check Number 3031 for $1,080, Check Number 3065 for $316, and Check Number 3069 for $1,848 are outstanding checks as of July 31. c. Check Number 3056 for July rent expense was correctly written and drawn for $1,290 but was erroneously entered in the accounting records as $1,280. d. The July bank statement shows the bank collected $8,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. f. The July statement shows a $13 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. g. Branch's July 31 daily cash receipts of $9,632 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement. < Prev S 2 3 of 3 Next > 5:55 Required information 1. Prepare the bank reconciliation for this company as of July 31. BRANCH COMPANY Bank Reconciliation Bank statement balance Add: July 31 $ 26,932 Book balance $ 25,639 Add: Deposit of July 31 $ 9,632 9,632 36,564 Deduct: Deduct: Adjusted bank balance < Prev +0 $ 36,564 Adjusted book balance S 2 3 of 3 Next > 0 25,639 $ 25,639 Problem 6-4A (Algo) Part 2 2. Prepare the journal entries necessary to make the company's book balance of cash equal to the reconciled cash balance as 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal 1 a. No journal entry required 8:39 2 b. No journal entry required 3 C. Rent expense Cash 4 d. Cash Collection expense Notes receivable < Prev S Gm 3 no of 3 Next > Debit Credit 10 10