Nakashima Gallery had the following petty cash transactions in February of the current year. Feb. 2 Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier. 5 Purchased paper for the copier for $14.75 that is immediately used. 9 Paid $34.50 cop shipping charges on merchandise purchased for resale, terms fos shipping point. Nakashima uses the perpetual system to account for merchandise inventory. 12 Paid $8.45 postage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager, $74 for mileage on her car. 20 Purchased stationery for $68.77 that is immediately used. 23 Paid a courier $19 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $11.90 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $55 for postage expenses. 28 The fund had $21.51 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 $140 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