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 $14.75 that is immediately used.
		9		Paid $38.50 shipping charges (transportation-in) on merchandise purchased for resale, terms 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, $71 for mileage on her car.
		20		Purchased office paper for $67.77 that is immediately used.
		23		Paid a courier $18 to deliver merchandise sold to a customer, terms FOB destination.
		25		Paid $10.20 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
		27		Paid $55 for postage expenses.
		28		The fund had $25.96 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 $60 to a total of $410.

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.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry to establish the petty cash fund. View transaction list View journal entry worksheet General Journal Debit Credit No 1 Date Feb 02 350 Petty cash Cash 350 Required Required 2 > 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.) $ 18.00 71.00 NAKASHIMA GALLERY Petty Cash Payments Report (for February) Delivery expense Delivery of customer's merchandise Mileage expense Feb. 14 Reimbursement for mileage Postage expense Feb. 27 Purchased postage stamps S 55.00 Feb. 12 Express delivery of contract 7.25 Merchandise inventory (transportation-in) Shipping charges on purchases 10.20 Feb. 9 Shipping charges on purchases 38.50 Office supplies expense Feb. 5 Purchased paper for copier 14.75 Feb. 20 Purchased office paper 67.77 Total 62.25 Feb. 25 48.70 82.52 Required 1 Required 2 Required 3 Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. (Round your answers to 2 decimal places.) View transaction line View journal entry worksheet No Debit Credit Date Feb 28 1 General Journal Mileage expense Merchandise inventory Delivery expense Office supplies expense Postage expense Cash over and short Cash 71.00 48.70 18.00 82.52 62.25