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Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory.

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.

Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory. February 2. Wrote a $340 cheok to establish a petty cash fund. February 5 Purehased paper for the copier for $16.35 that is immediately used. February 9 Paid $42.50 shipping charges (transportation-in) on merchandise purchased for resale, terms roB shipping point. These costs are added to merchandise inventory. February 12 Paid $7.05 postage to deliver a contract to a olient. February 14 Reimbursed Mdina Sharon, the manager, $67 for mileage on her car. Pobruary 20 purchased office paper for $67.77 that is intediately used. Pebruary 23 Paid a courier $18 to deliver merchandise sold to a customer, terms FOB destination. February 25 Poid $11,40 shipping charges (transportation-in) on merchandise purchased for resale, terms pon shipping point. These conts are added to merchandise inventory. February 27 Patd $51 for poistage expenses. February 28 The fund had $25.35 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchanged them for a cheek to reimburse the fund for expenditures. February 28 The petty caak fund amount is increased by $110 to a total of $450. 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. Journal entry worksheet Wrote a $340 check to establish a petty cash fund. Ni NAKASHIMA GALLERY Petty Cash Payments Report (for February) Journal entry worksheet Record the reimbursement of the petty cash fund. Note: Enter debits before credits. Journal entry worksheet Record the increase of the petty cash fund. Note: Enter debits before credits. Note receivable Office supplies expense Petty cash Postage expense Printing expense Prev 3 of

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