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 $15.75 that is immediately used.
February 9	Paid $42.50 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 contract to a client.
February 14	Reimbursed Adina Sharon, the manager, $72 for mileage on her car.
February 20	Purchased office paper for $67.77 that is immediately used.
February 23	Paid a courier $19 to deliver merchandise sold to a customer, terms FOB destination.
February 25	Paid $11.10 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
February 27	Paid $50 for postage expenses.
February 28	The fund had $21.99 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 $80 to a total of $430.

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.