Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 $16.35 that is imiediately used. february 9 Paid $32.50 shipping charges (transportation-in) on merchandise purchased for resale, terms foB shipping point. These costs are added to merchandise inventory. February 12 Paid 57,35 postage to deliver a contract to a client. february 14 Reimbursed Adina Sharon, the nanager, \$76 for mileage on her car. February 2a Purchased office papen for 567.77 that is dmmediately used. February 23 Paid a courier $20 to deliver merchandise sold to a customer, terms Fou destination. February 25 Paid \$11.8e shipping charges (transportation-in) on merchandise purchased for resale, teras fob shipping point. These costs are added to merchandise inventory. February 27 Paid $57 for postage expenses. February 28 The fund had $25.94 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchanged then for a check to reimburse the fund for expenditures. February 28 The petty cash fund amount is increased by $120 to a total of $480. Requlred: 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. Prepare the journal entry to establish the petty cash fund. Complete this question by entering your answers in the tabs below. Prepare the joumal entries for required 2 to both (a) reimburse and (b) increase the fund amount. Note: Round your answers to 2 decimal places. Complete this question by entering your answers in the tabs below. Prepare a petty cash payments report for February with these categories: delivery expense, mileagen expense, merchandise inventory (for transportation-in), and office supplies expense. Note: Round your answers to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Conducting An Institutional Diversity Audit In Higher Education A Practitioners Guide To Systematic Diversity Transformation

Authors: Edna Chun, Alvin Evans, Benjamin D. Reese

1st Edition

1620368196, 978-1620368190

More Books

Students also viewed these Accounting questions

Question

Understanding Group Leadership Culture and Group Leadership

Answered: 1 week ago