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 occount for merchandise inventory. February 2 Wrote a $360 check to establish a petty cash fund. February 5 Purchased paper for the copier for $14.95 that is immediately used. February 9 paid $30.50 shipping charges (transportation-in) on merchandise purchased for resate, terns Fob shipping point. These costs are added to merchandise inventory. February 12 Paid $7,45 postage to deliver a contract to a client. February 14 Reinbursed Adina Sharon, the nanager, 572 for mileage on her car. February 20 Purchased of fice paper for $68.77 that is inmediately used. February 23 Paid a courier $22 to deliver merchandise sold to a customer, terns fos destination. February 25 Paid $11.50 shipping charges (transportation-in) on merchandise purchased for resate, terns FoB shipping point. These costs are added to merchandise inventory. February 27 Paid $51 for postage expenses. February 28 The fund had $25.88 renaining in the petty cashbox. 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 asount is increased by $50 to a total of $410. 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. The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31 . a. On July 31 , the company's Cash account has a $25,381 debit balance, but its July bank statement shows a $27,490 cash balance. b. Check Number 3031 for $1,410, Check Number 3065 for $481, and Check Number 3069 for $2,178 are outstanding checks as of July 31. c. Check Number 3056 for July rent expense was correctly written and drawn for $1,230 but was ecroneously entered in the accounting records as $1,220. d. The July bank statement shows the bank collected $8,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. The bank statement shows an $805 NSF check. The check had been received from a customet, Evan Shaw. Branch has not yet recorded this check as NSF, 6. The July statement shows a $13 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been recelved. g. Branch's July 31 dally cash receipts of $9,632 were placed in the bank's night depository on that date but do not oppear on the July 31 bank stotement. Problem 8-4A (Algo) Part 2 2. Prepare the journal entries necessary to make the company's book balonce of cash equal to the reconciled cash balance as of July 31. Note: If no entry is required for a transaction/event, select "No joumal entry required" in the first account field. The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31 . a. On July 31 , the company's Cash account has a $25,381 debit balance, but its July bank statement shows a $27,490 cash balance. b. Check Number 3031 for $1,410, Check Number 3065 for $481, and Check Number 3069 for $2,178 are outstanding checks as of July 31. c. Check Number 3056 for July rent expense was correctly written and drawn for $1,230 but was erroneously entered in the accounting records as $1,220. d. The July bank statement shows the bank collected $8,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. The bank statement shows an $805 NSF check. The check had been recelved from a customer, Evan Shaw, Branch has not yet recorded this check as NSF. f. The July statement shows a $13 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. 9. Branch's July 31 dally cash recelpts of $9,632 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement. Problem 8-4A (Algo) Part 1 Required: 1. Prepare the bank reconciliation for this company as of July 31