Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the

perpetual system to account for merchandise inventory.

Feb. $2$ Wrote a $$400$ check to establish a petty cash fund.

$5$ Purchased paper for the copier for $$14\mathrm{.}15$ that is immediately used.

$9$ Paid $$32\mathrm{.}50$ shipping charges $($transportation$-$in$)$ on merchandise purchased for resale, terms FOB

shipping point. These costs are added to merchandise inventory.

$12$ Paid $$7\mathrm{.}95$ postage to deliver a contract to a client.

$14$ Reimbursed Adina Sharon, the manager, $$68$ for mileage on her car.

$20$ Purchased office paper for $$67\mathrm{.}77$ that is immediately used.

$23$ Paid a courier $$20$ to deliver merchandise sold to a customer, terms FOB destination.

$25$ Paid $$13\mathrm{.}10$ shipping charges $($transportation$-$in$)$ on merchandise purchased for resale, terms FOB

shipping point. These costs are added to merchandise inventory.

$27$ Paid $$54$ for postage expenses.

$28$ The fund had $$120\mathrm{.}42$ 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 $$100$ to a total of $$500.$ Required

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 part $2$ to both $(a)$ reimburse and $(b)$ increase the fund amount.