Problem 8-3A (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 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 $15.35 that is immediately used.
February 9	Paid $40.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
February 12	Paid $8.55 postage to deliver a contract to a client.
February 14	Reimbursed Adina Sharon, the manager, $73 for mileage on her car.
February 20	Purchased office paper for $66.77 that is immediately used.
February 23	Paid a courier $17 to deliver merchandise sold to a customer, terms FOB destination.
February 25	Paid $10.60 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
February 27	Paid $52 for postage expenses.
February 28	The fund had $24.24 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 $120 to a total of $470.

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.