3 PM Robert Rod Help Save &Exit; Submi Check my work Problem 6-3A Establishing,

Question

3 PM Robert Rod Help Save &Exit; Submi Check my work 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 Feb. 2 Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to chloe ddison, the petty cashier 5 Purchased bond paper for the copier for $16.15 that is i 9 Paid $34.50 COD mmediately used shipping charges on nerchandise purchased for resale, terns POB shippi ing point. Nakashina the perpetual systen to account for nerchandise invent 12 Paid $7.55 postage to express mail a contract to a client 14 Reimbursed Adi uses ory na Sharon, the manager, $68 for business mileage on her car. 20 Purchased stationery for $67.77 that is innediately usecd 23 Paid a courier $20 to deliver merchandise sold to a custoner, terns POB destination. 25 Paid $11.60 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $51 for postage expenses es 28 The fund had $23.44 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 $450. 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 bs below Complete this question by entering your answers in the ta Required 1 Required 2Required 3 Prev 1 of Next>

Explanation / Answer

Solution: 1. Date General Journal Debit Credit Feb 02 Petty cash 350 Cash 350 2 NAKASHIMA GALLERY Petty Cash Payments Report (for February) Delivery expense Feb 23 Delivery of customer's merchandise 20 a Mileage expense Feb 14 Reimbursement for mileage 68 b Postage expense Feb 12 Express delivery of contract 7.55 Feb 27 Purchased postage stamps 51 58.55 c=7.55+51 Merchandise inventory (transportation-in) Feb 9 COD charges on purchases 34.50 Feb 25 COD charges on purchases 11.60 46.10 d=34.50+11.60 Office supplies expense Feb 5 Purchased paper for copier 16.15 Feb 20 Purchased stationery 67.77 83.92 e=16.15+67.77 Total 276.57 f=a+b+c+d+e 3. Date General Journal Debit Credit Feb 28 Delivery expense 20 Mileage expense 68 Postage expense 58.55 Merchandise inventory 46.10 Office supplies expense 83.92 Cash over and short 49.99 Cash 326.56 Feb 28 Petty cash 100 Cash 100 Working Notes: Delivery expense 20 see a. in 2. Mileage expense 68 see b. in 2. Postage expense 58.55 see c. in 2. Merchandise inventory 46.10 see d. in 2. Office supplies expense 83.92 see e. in 2. Cash over and short 49.99 [total petty cash - total petty cash payments - petty cash fund remain in box] [350 - 276.57 - 23.44 =   49.99] Cash 326.56 [total petty cash - fund remaining in box] [350-23.44 =326.56   ] Please feel free to ask if anything about above solution in comment section of the question.

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