Question

Check my we 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 5.350 check to establish a petty eas fund. 5 Purchased paper for the copier for $15.35 that is immediately used. 9 Paid 536.50 shipping charges transportation-in) on merchandise purchased for resale, ter os shipping point. These costs are added to serchandise inventory 12 Paid 58.55 postage to deliver a contract to a ellent. 14 Reisbursed Adina Sharon, the manager, 72 for mileage on her car. 20 Purchased office paper for $68.77 th e immediately used. 23 Paid Courier 516 to deliver merchandise old to a customer, terms FOB destination. 25 Taid $12.10 shipping charges transportation-in) o rchandise purchased for reale, terroos ing point. These coats are added to merchandise Inventory. 27 Paid 657 for postage expenses. 28 The fund had $26.22 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchanged the for a better the fund for expenditure 28 The petty cash fund u nt is increased by $140 to a total of 0. 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 Mor transportation in and office supplies expense. 3. Prepare the journal entries for required 2 to both rimburse and increase the fund amount nmnete this in how enterin were in the the < Prev 1 of 1 Next > we RTYUI / */ cvB NM N M mand command optic

Answer 1

Answer of Part 1: Credit Date Feb 2 Accounts Titles & Explanation Petty Cash Cash Debit 350 350

Answer of Part 2: NAKASHIMA GALLERY Petty Cash Payments Report (For February) Delivery Expense Feb-23 Delivery of Customer's Merchandise Milegae Expense Feb. 14 Reimbursement for Mileage Postage Expense Feb-12 Express Delivery of Contract 8.55 Feb-27 Purchased Postage Stamps 57 Merchandise Inventory (transportation-in) Feb. 9 COD Charges on Purchases 36.5 Feb. 25 COD Charges on Purchases 12.1 Office Supplies Expense Feb. 5 Purchased paper for Copier 15.35 Feb-20 Purchsed Stationery 68.77 TOTAL 65.55 48.6 84.12 286.27

Answer of Part 3: Credit Date Feb 28 Accounts Titles & Explanation Mileage Expense Merchandise Inventory Delivery Expense Office Supplies Expense Postage Expense Cash Over and Short Cash Petty Cash Cash Debit 72 48.6 16 84.12 65.55 37.51 323.78 Feb 28 140 140