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 $15.95 that is immediately used. 9 Paid $40.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 12 Paid $8.85 postage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager, $67 for mileage on her car. 20 Purchased office paper for $67.77 that is immediately used. 23 Paid a courier $23 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $10.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 27 Paid $60 for postage expenses. 28 The fund had $26.14 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. 3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. (Round your answers to 2 decimal places.) 21.00 X 66.00 X NAKASHIMA GALLERY Petty Cash Payments Report (for February) Delivery expense Feb. 23 Delivery of customer's merchandise $ Mileage expense Feb. 14 Reimbursement for mileage Postage expense Feb. 12 Purchased postage stamps x $ 8.65 X Feb. 27 Purchased postage stamps 50.00 Merchandise inventory (transportation-in) Feb. 9 Delivery of customer's merchandise X 40.50 Feb. 25 Delivery of customer's merchandise x 11.00 X Office supplies expense Feb. 5 Purchased office paper x 15.95 Feb. 20 Purchased office paper 66.77 X Total 58.65 51.50 82.72 279.87 X $ 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 $15.95 that is immediately used. 9 Paid $40.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 12 Paid $8.85 postage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager, $67 for mileage on her car. 20 Purchased office paper for $67.77 that is immediately used. 23 Paid a courier $23 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $10.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 27 Paid $60 for postage expenses. 28 The fund had $26.14 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. 3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entries for requir Required 3 a) reimburse and (b) increase the fund amount. (Round your answers to 2 decimal places.) No General Journal Debit Credit Date Feb 28 1 x Petty cash Cash over and short 279.87 55.81 Cash x 335.68 X 2 Feb 28 110.00 Petty cash Cash 110.00 X
