Establishing, reimbursing, and increasing petty cash LO P2 Nakashima Gallery had the following petty cash transactions in February of the current year Feb. 2 Wrote a $340 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 $16.75 that is immediately used
9 Paid $36.50 CoD 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 Reimbursed Adina Sharon, the manager, $71 for business mileage on her car.
20 Purchased stationery for $66.77 that is immediately used
23 Paid a courier $17 to deliver merchandise sold to a customer, terms F0B destination.
25 Paid $10.30 cOD shipping charges on merchandise purchased for resale, terms FOB shipping point.
27 Paid $54 for postage expenses
28 The fund had $23.
28 remaining in the petty cash box. 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 $130 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. 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) reimburse and (b) increase the fund amount.
Required Required 2 Required 3
Prepare the journal entry to establish the petty cash fund