Question

Problem 8-3A Establishing, reimbursing, and increasing petty cash LO P2 Nakashima Gallery had the following petty cash transactions in February of the current year. Feb. 2 Wrote a $340 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier. 5 Purchased bond paper for the copier for $15.35 that is immediately used. 9 Paid $40.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory. 12 Paid $8.75 postage to express mail a contract to a client. 14 Reimbursed Adina Sharon, the manager, $68 for business mileage on her car. 20 Purchased stationery for $68.77 that is immediately used. 23 Paid a courier $24 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $11.90 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $60 for postage expenses. 28 The fund had $21.65 remaining in the petty cash box. 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 $60 to a total of $400.

Answer 1

Debit Credit Date & 340 Feb. 2 & 340 General Journal Petty cash Cash (to record petty cash fund established $ 68 Nakashima Gallery Petty cash Payments Report (for February Delivery expense Feb. 23 Delivery of ustomer's merchandise $ 24 Mileage expense Feb. 14 Reimbursement for mileage Postage expense Feb 12 Express delivery of contract $ 8.75 feb. 27 Purchased postage stamps & 68.75 Merchandise Inventory (transportation) Feb. 9 COD charges on purchases $ 40.50 COD charges on puschases $ lleoo $ 51.50 Office supplies expense Feb. 5 Purchased paper for copies $ $ 15.35 feb. 20 Purchased stationery $ 68.77 $ 84.12 Total $ 296.37 & 60 - en Feb. 25

Date Debit Credit 68 Feb.28 $ $ 51.50 General Journal Mileage expense Merchandise Inventory Delivery expense office supplies expense Postage expense Cash and short $ 24 & 84.12 $ 68.75 over & 21.98 Cash $ 318.35 (to record reimburse the fund amount) & to & 60 Feb.28 Petty cash Cash (to record fund amount increased) Calculation! Cash Petty cash Remaining in Petty cash Box & 340 $ 21.65 $ 318.35 Cash over and short ( Cash - All expenses) ($318.35 - $68 - $51.50 - $24 - $84.12 - $68.75 $ 21.98