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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. 2
Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory. 2 Wrote a S360 check to establish a petty cash fund 5 Purchased paper for the copier for $15.75 that is immediately used 9 Paid $42.50 shipping charges (transportation -in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory 12 Paid $8.35 postage to deliver a contract to a client 14 Reimbursed Adina Sharon, the manager, $72 for mileage on her car 20 Purchased office paper for $67.77 that is immediately used. 23 Paid a courier $21 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $11.90 shipping charges (transportation -in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory 27 Paid $57 for postage expenses 28 The fund had $25.01 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 $80 to a total of $440. Feb. 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 3 Required 1 Required 2 Prepare the journal entry to establish the petty cash fund. View transaction liat Journal entry worksheet 1 Wrote a $360 check to establish a petty cash fund. Note: Enter debits before cred its. Date General Journal Debit Credit Feb 02 Record entry Clear entry View general Journal Prepare the journal entries for required 2 to both iplaces. reimburse and (b) increase the fund amount. (Round your answers to 2 decimal View transaction llst Journal entry worksheet 1 2 Record the reimbursement of the petty cash fund. Note: Enter debits before credits General Journal Date Debit Credit Feb 28 Record entry Clear entry View general journal Journal entry worksheet 1 2
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