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Beard Gallery had the following petty cash transactions in Febr

uary of the current year:

2/2

Wrote a $300 check, cashed it, and gave the proceeds and the petty cashbox to

Reggie Gore, the petty cashier.

2/5

Purchased b

ond paper for the copier that was immediately used for $14.55.

2/9

Paid $32.50 COD shipping charges on merchandise purchased for resale, terms

FOB shipping point. Beard uses the perpetual system to account for merchandise

inventory

2/12

Paid $7.85 postage

to expre

ss mail a contract to a client.

2/14

Reimbursed Jonny Carr, the manager, $66 for business mileage on her car.

2/20

Purchased stationery that w

as immediately used for $67.67.

2/23

Paid a courier $23 to deliver merchandise sold to a c

ustomer, terms

FOB

destination.

2/25

Paid $10.30 COD shipping charges on merchandise purchased for resale, terms

FOB shipping point.

2/27 Paid $55 for postage expenses.

2/28

The fund had $20.82 remaining in the petty cash box. Sorted the petty cash

receipts by accounts a

ffected and exchanged them for a check to reimb

urse the fund for

expenditures.

2/28

The petty cash fund amount is increased by $100 to a total of $400.

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. Sort the payments into the

appropriate categories and total the expenditures in each

category. Round your

answers to two decimal places. Omit the "$" sign in your response.

3.

Prepare the journal entries for part 2 to both reimburse and increase the fund

amount. Round your answers to two decimal places. Omit the "$" sign in your

response

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