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 $350 check to establish a petty cash fund

February 5 purchased paper for the copier for $16.75 that is immediately used

February 9 paid $36.50 shipping charges (transportation- in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory

February 12 paid $7.55 postage to deliver a contract to a client

February 14 Reimbursed Adina Sharon, the manager, $71 for mileage on her car

February 20 purchased office paper for $67.77 that is immediately used

February 23 paid a courier $24 to deliver merchandise sold to a customer, terms FOB destination

February 25 paid $11.40 shipping charges (transportation- in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory

February 27 paid $60 for postage expenses

February 28 The fund had $21.74 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

February 28 The petty cash fund amount is increased by $150 to a total of $500

prepare the journal entry to establish the petty cash fund

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

prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fubd amount