Problem 6-3A Establishing, reimbursing, and increasing petty cash LO P2
Problem 6-3A Establishing, reimbursing, and increasing petty cash LO P2 Nakashima Gallery had the following petty cash transactions in February of the current year Feb. 2 Wrote a $360 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier. 5 Purchased bond paper for the copier for $15.95 that is immediately used 9 Paid $34.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory 12 Paid $8.95 postage to express mail a contract to a client 14 Reimbursed Adina Sharon, the manager, $70 for business mileage on her car 20 Purchased stationery for $69.77 that is immediately used. 23 Paid a courier $19 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $10.80 COD shipping charges on merchandise purchased for resale, terms FOB shipping point 27 Paid $56 for postage expenses. 28 The fund had $26.36 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures. 28 The petty cash fund amount is increased by $60 to a total of $420 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. Sort the payments into the appropriate categories and total the expenditures in each category 3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. Journal entry worksheet Wrote a $360 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier. Note: Enter debits before credits. Date General Journal Debit Credit Feb 02 Record entry Clear entry View general journal 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. Sort the payments into the appropriate categories and total the expenditures in each category. (Round your answers to 2 decimal places.) NAKASHIMA GALLERY Petty Cash Payments Report (for February) Delivery expense Mileage expense Postage expense 0.00 Merchandise inventory (transportation-in) 0.00 Office supplies expense 0.00 Total Journal entry worksheet 2 Record the reimbursement of the petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit Feb 28 Record entry Clear entry View general journal Journal entry worksheet 2 Record the increase of the petty cash fund Note: Enter debits before credits. Date General Journal Debit Credit Feb 28 Record entry Clear entry View general journal
