Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 6-3A (Algo) Establishing, reimbursing, and increasing petty cash LO P2 Nakashima Gallery had the following petty cash transactions in February of the current year.

image text in transcribed
Problem 6-3A (Algo) Establishing, reimbursing, and increasing petty cash LO P2 Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual syatem to account for merchandise inventory. February 2 Wrote a 5350 check to establish a petty cash fund. February 5 Purchased paper for the copier for $15.55 that is inmediately used. February 9 Paid 544,50 shipping charges (transportation-in) on merchandise purchased for resale, terns foe shipping point. These costs are added to merchandise inventory. February 12 Paid 58.55 postage to deliver a contract to a client. February 14 Reinbursed Adina Sharon, the manager, $65 for nileage on her car. February 20 Purchased of fice paper for $66.77 that is immediately used. February 23 Paid a courier $18 to deliver merchandise sold to a custoner, terns FoB destination. February 23 Paid a courier $18 to deliver inerchandise sotd to a customer, terns Fob destination. February 25 Paid $10.10 shipping charges (transportation-in) on merchandise purchased for resale, terns Fols shipping point. These costs are added to merchandise inventory. February 27 Paid $52 for postage expenses. February 28 The fund had $22.02 remaining in the petty coshbox. Sorted the petty cash receipts by accounts affected and exchanged then for a check to reimburse the fund for expenditures. February 28 The petty cash fund amount is increased by $110 to a total of $460. 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

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_2

Step: 3

blur-text-image_3

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 And Reporting A Global Perspective

Authors: Herve Stolowy, Yuan Ding, Luc Paugam

6th Edition

147376730X, 9781473767300

More Books

Students also viewed these Accounting questions