er 6 HW Nakashima Gallery had the following petty cash trans

er 6 HW Nakashima Gallery had the following petty cash transactions in February of the current year Feb. 2 Wrote a $358 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 $14.35 that is imediately used. 9 Paid S40.50 CO shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory 12 Paid $6.95 postage to express mail a contract to a client. 14 Reinbursed Adina Sharon, the manager, $67 for business mileage on her car. 28 Purchased stationery for $67.77 that is immediately used. 23 Paid a courier $22 to deliver merchandise sold to a customer, terms F08 destination. 25 Paid $1e.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $51 for postage expenses. 28 The fund had $22.12 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them ok nt for a check to reimburse the fund for expenditures. 28 The petty cash fund amount is increased by $10e to a total of $45e. nces Required: 1. Prepare the journal entry to establish the petty cash fund. 2. Prepare a petty cash payments report for February with these cetegories: 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) relmburse and (b) increase the fund amount Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. (Round your answers to

Solution

Feb 28:
Delivery expense(db)22
mileage expense(db)67
Postage expense(db) 6.95+51=57.95
Merchandise inventory(db)40.5+10.10=50.60
Office supplies expense(db) 14.35+67.77=82.12
Cash over and carry(db) 48.21
cash(cr) 350-22.12=327.88

Feb 28: petty cash(db)100cash(cr)100