Nakashima Gallery had the following petty cash transactions in February of the current year Feb. 2 Wrote a $340 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier. 5 Purchased bond paper for the copier for $16.55 that is immediately used 9 Paid $32.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory 12 Paid $8.15 postage to express mail a contract to a client 14 Reimbursed Adina Sharon, the manager, $66 for business mileage on her car. 20 Purchased stationery for $69.77 that is immediately used. 23 Paid a courier $19 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $10.40 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $60 for postage expenses 28 The fund had $21.82 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged therm for a check to reimburse the fund for expenditures. 28 The petty cash fund amount is increased by $150 to a total of $490 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 3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. Wrote a $340 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier. Note: Enter debits before credits. Date General Journal Debit Credit Feb 02 NAKASHIMA GALLERY Petty Cash Payments Report (for February) Delivery expense Mileage expense Postage expense Merchandise inventory (transportation-in) Office supplies expense Total 2 Record the reimbursement of the petty cash fund Note: Enter debits before credits. Date General Journal Debit Credit Feb 28 2 Record the increase of the petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit Feb 28