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Nakashima Gallery had the following petty cash transactions in February of the c

ID: 2521487 • Letter: N

Question

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 Addison, the petty cashier 5 Purchased bond paper for the copier for $14.95 that is immediately used. 9 Paid $44.58 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory 12 Paid $7.05 postage to express mail a contract to a client 14 Reimbursed Adina Sharon, the manager, $72 for business mileage on her car. 20 Purchased stationery for $67.77 that is immediately used. 23 Paid a courier $15 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $11.40 coD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $51 for postage expenses. 28 The fund had $21.44 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 $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 expen merchandise inventory (for transportation-in), and office supplies expense. Sort the payments into the appropriate categories and tot 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 2Required 3

Explanation / Answer

1.

2.

Petty Cash Reconciliation Report for the month of February

Custodian Name- Chole Addison

Please issue a cheque in the amount of $ 328.56 payable to petty cash custodian in order to replenish the petty cash fund to the established fund.

3.

Date Account Details Debit Credit 2-Feb Petty Cash 350 Cash 350 Petty cash fund established