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-1,2 and 3

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 $15.35 that is immediately used. 9 Paid $32.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory. 12 Paid $8.65 postage to express mail a contract to a client. 14 Reimbursed Adina Sharon, the manager, $71 for business mileage on her car. 20 Purchased stationery for $69.77 that is immediately used. 23 Paid a courier $19 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $10.80 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $58 for postage expenses. 28 The fund had $25.77 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 $130 to a total of $470.

Explanation / Answer

2)Petty cash Report

3)

Date Account Debit credit Feb 2 petty cash 340 cash 340 [being petty cash fund established]

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.