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


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 $340 check to establish a petty cash Fund.
February Purchased paper for the copier for $15.55 that is immediately used.
February 9 Paid $44.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
February 12 Paid $7.85 postage to deliver a ver a contract to a client.
February 14 Reimbursed Adina Sharon, the manager, er, $66 for mileage on her car.
February 28 Purchased office paper for $68.77 that is immediately used. February
23 Paid a courier $25 to deliver merchandise sold to a customer, terms FOB destination.
February 25 Paid $11.80 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
February 27 Paid 360 for postage expenses
February 28 The fund had $22.82 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 $120 to a total of 3460.
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

1 Journal entry to establish the petty cash fund on February 2 February ... 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

Financial Accounting Information for Decisions

Authors: John Wild

7th edition

78025893, 978-0078025891

More Books

Students also viewed these Accounting questions

Question

1. To develop skill in sharing information about self with others.

Answered: 1 week ago

Question

Do you think I make unilateral decisions?

Answered: 1 week ago