Question
Beard Gallery had the following petty cash transactions in Febr uary of the current year: 2/2 Wrote a $300 check, cashed it, and gave the
Beard Gallery had the following petty cash transactions in Febr
uary of the current year:
2/2
Wrote a $300 check, cashed it, and gave the proceeds and the petty cashbox to
Reggie Gore, the petty cashier.
2/5
Purchased b
ond paper for the copier that was immediately used for $14.55.
2/9
Paid $32.50 COD shipping charges on merchandise purchased for resale, terms
FOB shipping point. Beard uses the perpetual system to account for merchandise
inventory
2/12
Paid $7.85 postage
to expre
ss mail a contract to a client.
2/14
Reimbursed Jonny Carr, the manager, $66 for business mileage on her car.
2/20
Purchased stationery that w
as immediately used for $67.67.
2/23
Paid a courier $23 to deliver merchandise sold to a c
ustomer, terms
FOB
destination.
2/25
Paid $10.30 COD shipping charges on merchandise purchased for resale, terms
FOB shipping point.
2/27 Paid $55 for postage expenses.
2/28
The fund had $20.82 remaining in the petty cash box. Sorted the petty cash
receipts by accounts a
ffected and exchanged them for a check to reimb
urse the fund for
expenditures.
2/28
The petty cash fund amount is increased by $100 to a total of $400.
Required
1.
Prepare the journal entry to establish the petty cash fund.
2.
Prepare a petty cash payments
report for February with these categories:
delivery expense, mileage expense, postage expense, merchandise inventory
(for transportation
-
in), and office supplies expense. Sort the payments into the
appropriate categories and total the expenditures in each
category. Round your
answers to two decimal places. Omit the "$" sign in your response.
3.
Prepare the journal entries for part 2 to both reimburse and increase the fund
amount. Round your answers to two decimal places. Omit the "$" sign in your
response
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