Question: Subramaniam Gallery had the following petty cash transactions in February of the current year. Subramaniam uses the perpetual system to account for merchandise inventory. Feb. 2 Wrote a $400 check to establish a petty cash fund. 5 Purchased paper for the copier for $14.15 that is immediately used. 9 Paid \$32.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 12 Paid $7.95 postage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the inanager, $68 for mileage on her car. 20 Purchased office paper for $67.77 that is immediately used. 23 Paid a courier $20 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid \$13.10 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 27 Paid $54 for postage expenses. 28 The fund had $120.42 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. 28 The petty cash fund amount is increased by $100 to a total of $500. a. Prepare the journal entry to establish the petty cash fund. [1 Mark] b. 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. [5 Marks] c. Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount. [3+1=4 Marks ]