Nakashima Gallery hd the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchancise inventory. February 2 Wrote a $350 check to establish a petty cash fund. February 5 purchased paper for the copler for $14.95 that is innediately used. February 9 Paid $42,50 ahipping charges (traneportation-in) on nerehandise purchased for resale, termis FoB shipping point. These costs are added to merchandise inventory. February 12 Paid $7.25 postage to deliver a contract to a client, February 14 Reimbursed Adina Sharon, the manager, 206 tor miteago on her February 23 Paid a courier $17 to deliver werchandise sold to a customer, torme rob destination. February 25 Paid $11.20 shipping charges (transportation-in) on nerchandise purchaned for resale, terma FoB shipping point. These costs are added to merehandise inventory. Vebruary 27 paid $52 for pontage expensen. February 28 The fund had $22.86 remaining in the petty cashbox. Sorted the petty canh roceipts by accounts affected and exchanged them for a oheek to reimburse the fund for expenditures. Yebruary 2 the petty cash fund amount is increased by 560 to a total of 5410. Required: 1. Prepare the journal entry to establish the petty cash fund. 2. Prepare a petty cash payments report for February with these categories: dellvery 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) relmburse and (b) increase the fund amount