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Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to

account for merchandise inventory.

February $2$ Wrote a $$350$ check to establish a petty cash fund.

February $5$ Purchased paper for the copier for $$14\mathrm{.}95$ that is immediately used.

costs are added to merchandise inventory.

February $12$ Paid $$7\mathrm{.}45$ postage to deliver a contract to a client.

February $14$ Reimbursed Adina Sharon, the manager, $$70$ for mileage on her car.

February $20$ Purchased office paper for $$66\mathrm{.}77$ that is immediately used.

February $23$ Paid a courier $$20$ to deliver merchandise sold to a customer, terms FOB destination.

costs are added to merchandise inventory.

February $27$ Paid $$52$ for postage expenses.

them for a check to reimburse the fund for expenditures.

February $28$ The petty cash fund amount is increased by $$60$ to a total of $$410.$

Required:

Prepare the journal entry to establish the petty cash fund.

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.

Prepare the journal entries for required $2$ to both $($a$)$ reimburse and $(b)$ increase the fund amount.

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Prepare the journal entry to establish the petty cash fund.

Journal entry worksheet

Wrote a $$350$ check to establish a petty cash fund.

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