Question

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

Feb.		2		Wrote a $350 check to establish a petty cash fund.
		5		Purchased paper for the copier for $14.75 that is immediately used.
		9		Paid $36.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
		12		Paid $8.25 postage to deliver a contract to a client.
		14		Reimbursed Adina Sharon, the manager, $69 for mileage on her car.
		20		Purchased office paper for $69.77 that is immediately used.
		23		Paid a courier $23 to deliver merchandise sold to a customer, terms FOB destination.
		25		Paid $11.40 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
		27		Paid $50 for postage expenses.
		28		The fund had $25.36 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 $140 to a total of $490. 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. 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 to establish a petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit Feb 02 Record entry Clear entry View general journal Required 1 Required 2 >

Answer 1

ری Date Credit Debit $350 General Journal Petty cash feb. 02 Cash $350 (To second petty cash fund established) - Nakashima Gallery Petty Cash payments Report (for february) Delivery expense feb. 23 Delivery of customer's merchandise $ 23.00 Mileage expense feb. in Reimbursement for mileage $69.00 Postage expense feb. 12 Express delivery of contract $8.25 feb. 27 Purchased postage stamps $50.00 $58.25 Merchandise Inventory (transpostation-in) feb. 9 cod charges on purchases $36.50 feb: 25 COD charges on purchases $11.40 $ 47.90 і иера схреих Feb. 5 Purchased paper for $14.75 copier & 69.77 $84.52 Reb. 20 Purchased stationery 282.67 Total

Date Credit Ifeb.20L General Journal Debit Mileage expense $69.00 Merchandise Inventory $ 47.90 Delivery expense $23.00 office supplies expense $84.52 fоdаgе txpene $58.25 Cash over and short 1. $41.97 Cash (To recoed reimburse the fund amount) $324.64 feb. 28 Petty cash $ 140 $ 140 Casho (To reword fund amount increased) Calculation: Cash & Petty cash - Remaining in Petly Cash box = $350 - $25.36 a $324.64 Cash over and short - Cash - All expenses. = ($324.64 - $69 – $47. 90 - $23 - $84.52 - $58.25) - $41.97