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Nakashima Gallery had the following petty cash transactions in February of the current year. Feb. 2 Wrote a $350 check, cashed it, and gave the

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Nakashima Gallery had the following petty cash transactions in February of the current year. Feb. 2 Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier. 5 Purchased bond paper for the copier for $15.15 that is inmediately used. 9 Paid $40.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory 12 Paid $8.15 postage to express mail a contract to a client. 14 Reimbursed Adina Sharon, the manager, 967 for business mileage on her car. 20 Purchased stationery for $67.77 that is immediately used. 23 Paid a courier $22 to deliver merchandise sold to a customer, tern FOB destination. 25 Paid $11.90 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $59 for postage expenses. 28 The fund had $23.17 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reinburse the fund for expenditures. 28 The petty cash fund amount is increased by $120 to a total of $470. 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. Sort the payments into the appropriate categories and total the expenditures in each category 3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount

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