Nakashima Gallery had the following petty cash transactions in February of the c
ID: 2398216 • Letter: N
Question
Nakashima Gallery had the following petty cash transactions in February of the current year Feb. 2 Wrote a $358 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 $14.35 that is immediately used. 9 Paid $48.se cOD shipping charges on merchandise purchased for resale, terms FO8 shipping point. Nakashima uses the perpetual system to account for merchandise inventory 12 Paid $6.95 postage to express mail a contract to a client. 14 Reimbursed Adina Sharon, the manager, $67 for business mi leage on her car. 28 Purchased stationery for $67.77 that is immediately used. 23 Paid a courier $22 to deliver merchandise sold to a customer, terms FOB destination, 25 Paid S10.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $51 for postage expenses 28 The fund had $22.12 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 $100 to a total of $458 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 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 1 of 3 Next> ere to searchExplanation / Answer
Date
Account Titles
Debit
Credit
Feb 2
Petty Cash
350
Cash
350
Account Titles
Debit
Credit
Delivery Exp
22
Mileage Exp
67
Postage Exp (6.95 + 51)
57.95
Merchandise Inventory (40.50 + 10.10)
50.6
Office Supplies Exp (14.35 + 67.77)
82.12
Cash Short/Over
48.21
Petty Cash
100
Cash
427.88
Starting Amt = 350
(-) Total Receipt = 279.67
Amt of cash that should be in box = 70.33
Actual Cash = 22.12
(-) Should cash = 70.33
Short cash = $48.21
Petty Cash Increase = $100
Cash Replenishmet:-
Cash Wanted = 450
(-) Actual Cash = 22.12
= $427.88
Date
Account Titles
Debit
Credit
Feb 2
Petty Cash
350
Cash
350
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