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 $400 check to establish a petty cash fund. February 5 Purchased paper for the copier for $14.15 that is immediately used. February 9 Paid $32.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. February 12 Paid $7.95 postage to deliver a contract to a client. February 14 Reimbursed Adina Sharon, the manager, $68 for mileage on her car. February 20 Purchased office paper for $67.77 that is immediately used. February 23 Paid a courier $20 to deliver merchandise sold to a customer, terms FOB destination. February 25 Paid $13.10 shipping charges (transportation-in) on merchandise purchased for resale, terms F0B shipping point. These costs are added to merchandise inventory. February 27 Paid \$54 for postage expenses. February 28 The fund had $120.42 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. February 28 The petty cash fund amount is increased by $100 to a total of $500. 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. NAKASHIMA GALLERY Petty Cash Payments Report (for February) \begin{tabular}{|l|l|} \hline \multicolumn{2}{|l|}{ Delivery expense } \\ \hline February 23 Delivery of customer's merchandise \\ \hline Mileage expense & \\ \hline \end{tabular} Postage expense Merchandise inventory (transportation-in) \begin{tabular}{|l|l|l|l|l|} \hline & & & & \\ \hline \end{tabular} Office supplies expense Total 1 Required 3> Journal entry worksheet Record the reimbursement of the petty cash fund. Note: Enter debits before credits