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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 $16.15 that is immediately used. 9 Paid $38.58 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shippine point. These costs are added to merchandise inventory 12 Paid $8.75 postage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager, $74 for mileage on her car. 20 Purchased office paper for $69.77 that is immediately used 23 Paid a courier 517 to deliver merchandise sold to a customer, terns 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 559 for postage expenses. 28 The fund had $25.67 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 $148 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 Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Feb 28 17.00 Delivery expense Mileage expense Postage expense Merchandise inventory Office supplies expense Cash over and short Cash 74.00 67.75 49.00 85.92 2 Feb 28 Petty cash Cash 140.00 140.00

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