Question

Chapter 06 Homework Saved Nakashima Gallery had the following petty cash transactions in February of the current year. Feb. points 2 Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier. 5 Purchased paper for the copier for $14.75 that is immediately used. 9 Paid $30.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory. 12 Paid $7.45 postage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager, $73 for mileage on her car. 20 Purchased stationery for $69.77 that is immediately used. 23 Paid a courier $17 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $10.40 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $60 for postage expenses. 28 The fund had $25.37 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 $130 to a total of $480. eBook Print References 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry to establish the petty cash fund. View transaction list Journal entry worksheet Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier. Note: Enter debits before credits. Date General Journal Debit Credit Feb 02 Record entry Clear entry View general journal www.Davaoudz.........

Answer 1

Part 1

Date	General journal	Debit	Credit
Feb 02	Petty cash	350
	Cash		350

Part 2

Nakashima Gallery Petty cash payments report (for February)
Delivery expense
Feb. 23	Delivery of customer’s merchandise		17
Mileage expense
Feb. 14	Reimbursement for mileage		23
Postage expense
Feb. 12	Express delivery of contract	7.45
Feb. 27	Purchased postage stamps	60	67.45
Merchandise inventory (transportation-in)
Feb. 9	COD charges on purchases	30.50
Feb. 25	COD charges on purchases	10.40	40.90
Office supplies expenses
Feb. 5	Purchased paper for copier	14.75
Feb. 20	Purchased stationery	69.77	84.52
Total			232.87

Part 3

Date	General journal	Debit	Credit
Feb. 28	Mileage expense	23
	Merchandise inventory	40.90
	Delivery expense	17
	Office supplies expense	84.52
	Postage expense	67.45
	Cash over and short (difference)	91.76
	Cash (350-25.37)		324.63
Feb. 28	Petty cash	130
	Cash		130