Problem 6-3A Establishing, reimbursing, and increasing petty cash LO P2 Nakashim

Question

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 $360 check, cashed it, and gave the proceeds and the petty cashbox to chloe Addison, the petty cashier 5 Purchased bond paper for the copier tor $15 15 that is inmediately used 9 Paid $42 50 CoD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual systom to account tor merchandize inventory 12 Paid $855 postage to express mail a contract to a client. 14 Reinbursed Rdina Sharon, the manager. $75 Eor business mileage on her car. 20 Purchased stationery for $67,73 that is inmediately used. 23 Paid a courier $16 to deliver merchandise sold to à customer tems FOB destination. 25 paid s10.50 cOD shäpping charges on merchandise purchased for resale, terms FOB shipping point 27 paid $53 for postage expenses. 28 The fund had S24.34 remaining in tha petty cash box. sorted the petty caah raceipts by accounts affeoted and exchanged than for a check to reinburse the fund for oxpenditures. 29 The petty cash Eund amount is ineroased by $120 to a total of 48. Required: 1. Prepare the journal entry to establish the petty cosh fund 2 Prepare a petty cash payments report for February with these categories délivery expense, mleage expense, postage expense, merchandise inventory for transportatiori-n). and office suppliès expense. Sort the payments into the appropriate categories and total the expendnures 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 Prepare the journal entry to establish tha petty cash fund

Explanation / Answer

Journal Entry Date Account Title & Explanation Debit Credit Statement Showing Petty Cash Expense Report- February 02-Feb Petty Cash $360.00 Particular Amount Cash $360.00 Delivery Expense $16.00 (Being Established Petty Cash Account) Mileage Expense $75.00 Postage Expense $61.55 05-Feb Office Supplies Expense $15.15 Merchandised Inventory ( Transportation) $53.00 Petty Cash $15.15 Office Supplies Expense $82.92 Being Paid for purchase Bond Paper Petty Expenses Misc. $47.19 $335.66 09-Feb Merchandised inventory $42.50 Petty Cash $42.50 Petty Cash beginning $360.00 Being Cash paid for COD transportation Less: petty Cash expenses incurred -$288.47 Petty Cash Balance $71.53 12-Feb Postage Expense $8.55 Actual Petty Cash as on Feb28 $24.34 Petty Cash $8.55 Difference $47.19 Being Paid for Postage Expense 14-Feb Mileage Expense $75.00 Petty Cash $75.00 Being Paid for Mileage Expense 20-Feb Office Supplies Expense $67.77 Petty Cash $67.77 Being Paid for purchase staionery 23-Feb Delivery Expense $16.00 Petty Cash $16.00 Being Paid for delivery expense on sales 25-Feb Merchandised inventory $10.50 Petty Cash $10.50 Being Cash paid for COD on Purchase 27-Feb Postage Expense $53.00 Petty Cash $53.00 Being Paid for Postage Expense 27-Feb Petty Cash Miscellaneous $47.19 Petty Cash $47.19 Misc Petty Cash Expense 28-Feb Petty Cash $335.66 Cash $335.66 Being Cash for reimbursement for expense a/c 28-Feb Petty Cash $120.00 Cash $120.00 Being cash for Petty Cahs Expense

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