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

Question

Nakashima Gallery had the following petty cash transactions in February of the current year.

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.

Required 1

Required 2

Required 3

Prepare the journal entry to establish the petty cash fund.

Journal entry worksheet

Wrote a $340 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier.

Note: Enter debits before credits.

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. (Round your answers to 2 decimal places.)

Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. (Round your answers to 2 decimal places.)

Journal entry worksheet

Record the reimbursement of the petty cash fund.

Record the increase of the petty cash fund.

Note: Enter debits before credits.

Feb. 2 Wrote a $340 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 $44.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory. 12 Paid $7.55 postage to express mail a contract to a client. 14 Reimbursed Adina Sharon, the manager, $65 for business mileage on her car. 20 Purchased stationery for $68.77 that is immediately used. 23 Paid a courier $15 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $11.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $53 for postage expenses. 28 The fund had $24.44 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 $110 to a total of $450.

Explanation / Answer

Date General Journal Debit Credit 02-Feb Petty cash 340.00 Cash     340.00 NAKASHIMA GALLERY Petty Cash Payments Report (for February) Delivery expense 23-Feb Delivery of customer's merchandise      15.00 Mileage expense 14-Feb Reimbursement for mileage      65.00 Postage expense 12-Feb Express delivery of contract     7.55 27-Feb Purchased postage stamps 53.00      60.55 Merchandise inventory (transportation-in) 09-Feb COD charges on purchases 44.50 25-Feb COD charges on purchases 11.10      55.60 Office supplies expense 05-Feb Purchased paper for copier 14.95 20-Feb Purchased stationery 68.77      83.72 Total    279.87 Date General Journal Debit Credit 28-Feb Delivery expense      15.00 Mileage expense      65.00 Postage expense      60.55 Merchandise inventory      55.60 Office supplies expense      83.72 Cash over and short      35.69 Cash 340-24.44     315.56 28-Feb Petty cash     110.00 Cash     110.00

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