Question

Somewers of AWG Internet Security software unable to access their saved paswords and logins. Get Help Week 6- Chapter 8 a Nakashima Gallery had the following petty cash transactions in February of the current year Nakashima uses the perpetual system to account for merchandise inventory ports Feb. 2 Wrote a $360 check to establish a petty cash fund 3 Purchased paper for the copie for $14.55 Chat 1 mediately d. 9 Paid 030.50 shipping charges transportation-in) on merchandise purchased for reale, terns to shipping point. These COBB are added to merchandise inventory. 22 Paid 0.05 postage to deliver a contract to client. 14 Reimbursed Adina Sharon, the manager, S70 for mileage on bec Car 20 Purebased office papex for $68.77 that is inediately used 29 Paid Courier S22 to delivererchandise sold to customer cena FOB destination 25 Paid $10.50 shipping charges Itranoparation-in on merchandise purchased for resale, teens TOB shipping point. These coat are added to merchandise inventory 27 Paid 657 for postage expenses 28 The fund had $22.12 remaining in the petty cashbox Soxted the petty cash receipts by accounts attected and exchanged them for a cheek Orenburse the fund te expenditurea. 28 The petty cash fund amount increased by 9110 CD a cotal DE $470. 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. 3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount

Answer 1

1.

Date	General Journal	Debit	Credit
Feb. 2	Petty cash	360.00
	Cash		360.00
	(To record establishment of the petty cash fund)

2.

NAKASHIMA GALLERY
Petty Cash Payments Report (for February)
Delivery expense
Feb. 23	Delivery of customer's merchandise		22.00
Mileage expense
Feb. 14	Reimbursement for mileage		70.00
Postage expense
Feb. 12	Express delivery of contract	8.05
Feb. 27	Purchased postage stamps	57.00	65.05
Merchandise inventory (transportation-in)
Feb. 9	Shipping charges on purchases	34.50
Feb. 25	Shipping charges on purchases	10.50	45.00
Office supplies expense
Feb. 5	Purchased paper for copier	14.55
Feb. 20	Purchased office paper	68.77	83.32
Total			285.37

3.

Date	General Journal	Debit	Credit
Feb. 28	Delivery expense	22.00
	Mileage expense	70.00
	Postage expense	65.05
	Merchandise inventory	45.00
	Office supplies expense	83.32
	Cash short and over	52.51
	Cash ($360 - $22.12)		337.88
	(To record reimbursement of the petty cash fund)
Feb. 28	Petty cash	110.00
	Cash		110.00
	(To record the increase of the petty cash fund)