Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory. February

image text in transcribed
image text in transcribed
image text in transcribed
Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory. February 2 Wrote a $350 check to establish a petty cash fund. February 5 Purchased paper for the copier for $14.55 that is imediately used. February 9 paid \$36.50 shipping charges (transportation-in) on merchandise purchased for resale, terms Fob shipping point. These costs are added to merchandise inventory. February 12 Paid \$8.85 postage to deliver a contract to a client. February 14 Reimbursed Adina Sharon, the manager, $67 for mileage on her car. February 20 Purchased office paper for $67.77 that is immediately used. February 23 Paid a courler $17 to deliver merchandise sold to a customer, terms foe destination. February 25 Paid $11,30 shipping charges (transportation-in) on merchandise purchased for resale, terms Fob shipping point. These costs are added to merchandise inventory. February 27 Paid $58 for postage expenses. February 28 The fund had $25.70 remaining in the petty cashbok. Sorfed the petty cash receipts by accounts affected and exchanged thes for a check to neinburse the fund for expenditures: February 28 . The petty cash fund amount is increased by $90 to a total of $440. Required: 1. Prepare the journal entry to estabilish 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 joumal entries for required 2 to both (a) reimburse and (b) increase the fund amount. Journal entry worksheet Record the reimbursement of the petty cash fund. Note: Enter debits before credits. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. (Round your answers to 2 decimal places.) Journal entry worksheet Notes Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T Horngren

6th Edition

0131795082, 978-0131795082

More Books

Students also viewed these Accounting questions