Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory. Yeb. 2 Wrote a $340 check to establish a petty cash fund. 5 Purchased paper for the copier for $15.35 that is immediately used. 9 Paid $34.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 12 Paid $8.35 pontage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager, $75 for mileage on her car. 20 Purchased office paper for $67.77 that is immediately used. 23 Paid a courier $16 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $11.BO shipping charges (transportation-in) on merchandise purchased for resale, terns FOB shipping point. These costs are added to merchandise Inventory. 27 Daid $51 for postage expenses. 28 The fund had $21.72 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. 28 The petty cash fund amount is increased by $70 to a total of $410. 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