Question

Problem 6-3A Establishing, reimbursing, and increasing petty cash LO P2 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 $360 check to establish a petty cash fund. 5 Purchased paper for the copier for $15.95 that is immediately used. 9 Paid $38.50 shipping charges (transportation-in) on merchandise purchased for resale, tens FOB shipping point. These coats are added to marchandise inventory. 12 Paid $7.75 postage to deliver a contract to a client. 14 Reimbursed Mine Sharon, the manager, 365 for mileage on her car. 20 Purchased office paper for $67.77 that lommediately used. 23 Paid courier $19 to deliver merchandise sold to customer, terms FOB destination. 25 Paid $10.40 shipping charges (transportation-in) on merchandise purchased for resale, terma TOB shipping point. These costs are added to marchandise inventory 27 Paid $55 for postage expenses. 28 The fund had $21.82 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exehanged them for cheek to reimburse the fund for expenditures 28 The petty cash fund amount to increased by 8120 to a total of $40. 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 (o) reimburse and (b) increase the fund amount Answer is not complete. Complete this question by entering your answers in the tabs below.

Answer 1

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Part 1
Date	Account	Debit	Credit
Feb 2	Petty Cash	$        360
	Cash		$         360
Part 2
Feb 5	Office Supplies Expense		$     15.95
Feb 9	Merchandise Inventory		$     38.50
Feb 12	Postage Expense		$        7.75
Feb 14	Mileage Expense		$     65.00
Feb 20	Office Supplies Expense		$     67.77
Feb 23	Deliery Expense		$     19.00
Feb 25	Merchandise Inventory		$     10.40
Feb 27	Postage Expense		$     55.00
Total			$   279.37
Part 3
Feb 28	Office Supplies Expense		$     83.72
	Merchandise Inventory		$     48.90
	Postage Expense		$     62.75
	Mileage Expense		$     65.00
	Deliery Expense		$     19.00
	Cash Short or over ($360-$279.37-$21.82)		$     58.81
	Cash			$   338.18
Feb 28	Petty Cash		$         120
	Cash			$         120