Nakashima Gallery had the following petty cash transactions in February of the current yeat. Nakashima uses the perpetual system to account for merchandise inventory. February 2 Wrote a $340 check to establish a petty cash fund. February 5 Parchased paper for the copier for $14.55 that 18 inhediately used. Eebraary 9 Paid 532.50 ahipping charges (transportation-in) on nerchandise purchased for resale, terms ros ahipping point. These costa are added to merchandise inventory. February 12 Paid \$8.15 pontage to deliver a contract to a elient. February 14 Heimbursed Adina Sharon, the manager, $68 tor milleage on her car. February 20 parchaned office paper for $66.77 that is imaediately used. February 23 Paid a courier $18 to delfver morchandise trold to a cuetorer, terms ron destination. February 25 Paid 511.50 shipping eharges (transportation-in) on merchandise purchased for resale, terms FoB shipping point. These conts are added to merchandise inventory. February 27 Paid $56 for postage expenses. February 28 The fund had $23.69 renaining in the petty cashbox. Sorted the petty cash receipte by accounts atfected and exchanged them for a check to reimburtie the fund for expenditures. Pebruary 28 The petty cash fund amoant is increased by $100 to a total of $440. 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. Prepare the journal entry to establish the petty cash fund