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Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual syste account for merchandise inventory. February 2
Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual syste account for merchandise inventory. February 2 Wrote a $350 check to establish a petty cash fund. February 5 Purchased paper for the copier for $16.55 that is immediately used. February 9 Paid $32.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. Th costs are added to merchandise inventory. February 12 Paid $8.75 postage to deliver a contract to a client. February 14 Reimbursed Adina Sharon, the manager, $70 for mileage on her car. February 20 Purchased office paper for $68.77 that is immediately used. February 23 Paid a courier $19 to deliver merchandise sold to a customer, terms FOB destination. February 25 Paid $11.20 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. The costs are added to merchandise inventory. February 27 Paid $55 for postage expenses. February 28 The fund had $25.48 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchang them for a check to reimburse the fund for expenditures. February 28 The petty cash fund amount is increased by $100 to a total of $450. 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. Required 1 Required 2 Required 3 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. (Round your answers to 2 decimal places.) W NAKA SHIMA GALLERY Petty Cash Payments Report (for February) Delivery of customer's merchandise 19.00 Delivery expense February 23 Mileage expense February 14 Postage expense Reimbursement for mileage Required 1 Required 2 Required 3 Prepare the journal entry to establish the petty cash fund. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 February 02 Petty cash Cash 350 350 WERE Required 2 > Required 1 Required 2 Required 3 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. (Round your answers to 2 decimal places.) NAKASHIMA GALLERY 19.00 Petty Cash Payments Report (for February) Delivery expense February 23 Delivery of customer's merchandise Mileage expense February 14 Reimbursement for mileage Postage expense February 12 Express delivery of contract February 27 Purchased postage stamps Merchandise inventory (transportation-in) February 9 Shipping charges on purchases February 25 Shipping charges on purchases Office supplies expense February 5 Purchased paper for copier February 20 Purchased office paper Total 55.00 55.00 0.00 16.55 68.77 85.32 Required 1 Required 2 Required. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. (Round your answers to 2 decimal places.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 February 28 Cash over and short
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