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

Answer Petty Cash Book An organisation will incyor so many cash small expenses in the form of like amintes expenses, transportation expenses postager, supplies expenses, els. It is not a good to oqsh upper finance manager for such expenditure. Therefore, a specific fund generated . in the form of petty cash to sustain from such expenses. The Expenses incurred are paid from such petty cash account and the end of month the balance of petty cash fund will be regoled to the onging one. It helps to run operation & systama Hully. Journal Entry to establish the petty cash fund An entily will get a small cash form fingice manager to establish Petty Gsh Rund. It will create entry to Jebit. the petty cash cand created from Huge cych and credit the cash Account of the entity. Nakashima Gallery Journal Entry particulars Toebit 8 credit Petty Cash Ale Or. 360 - To G5h Alc (Being Petly cash fuqd incorporated) Tota I 1360 1360_ Petty Gish payment Report for February with the gluen Categories : for the purpose of which petty cash incorporated, the expenses are incurred. At the end of the perioj the company creates reports of such expenses with the 360 given heats

22 Nahathing Gallery Petty Gish Pq gments Report for the month Febrity Toate particelgo5 - AMICHI AME Ireb 22 Delivery Expenie Delivery of merchandise to cystor er under FOB O Destination Mileage Expense (fet.14) Rembursement the business mileage to manager 1 l postage Expense 8.05 Ifebial to client postage to express mail a contract Feb 27 other postage Expenses (Ex. Poutage stamps 70 57,00 165.05 Merchandise Inventory (transportation ig) Trebalcoo shipping changes on Merchanaise rerehrred. | 34.50 rebel Go shipping changes on merchandisa perchased ļ 10.50 45 - 1 office supplies Expense Feb. 5 Purchase of Bond paper for the Copper [ 14.55 I felizo purchase of stationery of office paper 1 68.77 | 83.32 Total payments of Retty cash 1 285.37 0462 yo 3 Journal Entries Particular Trebit(a) crevices | Feb.28. | Delivery Expense NE - Dr. | 22 I mileage Expense Ale Postage Expense Ak Dr 65.05 Merchandise Inventory ( 7199spor-10) Ak - On 45 office supplies Expenie Ale - od 83.32 Shortage of Cash Ale (360 - 22.12- 285.37 sa.si To Cash Ale (Being to record the petty cash expensel and the shortfall of quh] 116.28. / Petty G5h Ale , To Gsh Ale 1 (Being to record incverse in petty cart and Т-41 | 447.88145788 337.88 Vio

Working Nove - In Entry of expenses 19th is credited because the petty cash find is increased to the $470. . It is logical to credit cash Ale rather to credit petty cash. Because it is given that petty cash fund is incwerred to the $470 by $ 110