80.2K

Verified Solution

Link Copied!

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 $350 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, teres Fog shipping point. These costs are added to merchandise inventory. 12 Paid $7.05 postage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager, $74 for mileage on her car. 20 Purchased office paper for $68.77 that is immediately used. 23 Paid a courier $17 to deliver merchandise sold to a customer, terns FOB destination 25 Paid $11.40 shipping charges (transportation-in) on merchandise purchased for resale, terus Foe shipping point. These costs are added to merchandise inventory. 27 Paid $53 for postage expenses. 28 The fund had $26.08 remaining in the petty cashbox. 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 $80 to a total of $430. 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 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 1 2 Record the reimbursement of the petty cash fund

Answer & Explanation Solved by verified expert

See Answer