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 $350 check to establish a petty cash fund. 5 Purchased paper for the copier for $16.15 that is immediately used. 9 Paid $36.50 shipping charges (transportation-in) on merchandise purchased for resale, teres FOS shipping point. These costs are added to merchandise inventory. 12 paid $7.95 postage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager. 568 for allenge on her car. 20 Purchased office paper for $69.77 that is immediately used. 23 Paid a courler 516 to deliver merchandise sold to a customer, terus FOB destination 25 Paid $10.10 shipping charges (transportation in) on merchandise purchased for resale, terms Fos shipping point. These costs are added to merchandise inventory. 27 Pald $59 for postage expenses. 28 The fund had $24.69 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 20 The petty cash fund mount is increased by $50 to a total of $400. rences 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