Problem 8-3A 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 Feb 2 wrote a $350 check to establish a petty cash fund. Purchased paper for the copier for 515.15 that is immediately used. 9 Paid 538.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to serchandise inventory. 12 Paid 58.25 postage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager, 572 for mileage on her car 20 Purchased office paper for $65.77 that is mediately used. 23 Paid courier $22 to deliver merchandise sold to a customer, terns FOB destination 5 Paid 511.20 shipping charges transportation-in) on merchandise purchased for resale, terms FOS shipping point. These costs are added to merchandise inventory. 19 Paid 553 for postate expenses. 28 The fund had 21.61 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchanged them for check to restore the fund for expenditures. 21 The petty cash fundunt is increased by $110. to a total of 5450 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 2. Preare e journal entries for required 2 to both (a) reimburse and (b) increase the fund amount Journal entry worksheet 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