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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.

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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 $15.15 that is inmediately used. 9 Paid $36.50 shipping charges (transportation-in) on merchandise purchased for resale, terns FOB shipping point. These costs are added to merchandise inventory 12 Paid $7.25 postage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager, $66 for mileage on her car. ze Purchased office paper for $69.77 that is inmediately used. 23 Paid a courier $24 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $11.20 shipping charges (transportation-in) on merchandise purchased for resale, terns FOB shipping point. These costs are added to merchandise inventory. 27 Paid $58 for postage expenses. 28 The fund had $22.78 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 $70 to a total of $420. 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. Journal entry worksheet Wrote a $350 check to establish a petty cash fund. Note: Enter debits before credits. General Journal Debit Credit Date Feb 02 LI Record entry Clear entry View general journal Required 1 Required 2 > places.) NAKASHIMA GALLERY Petty Cash Payments Report (for February) Delivery expense Mileage expense Postage expense 0.00 Merchandise inventory (transportation-in) 0.00 Office supplies expense 0.00 Total Journal entry worksheet Record the reimbursement of the petty cash fund. Note: Enter debits before credits. General Journal Debit Credit Date Feb 28 Record entry Clear entry View general journal

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