Question

Nakashima Gallery had the following petty cash transactions in February of the current year. 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 $15.95 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 $7.65 postage to express mail a contract to a client. 14 Reimbursed Adina Sharon, the manager, 568 for business mileage on her car 2e Purchased stationery for $67.77 that is immediately used. 23 Paid a courier $23 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $10.90 COD shipping charges on merchandise purchased for resale, teras FOB shipping point. 27 Paid $57 for postage expenses. 28 The fund had $23.06 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. al of $430. 28 The petty cash fund amount is increased by $90 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 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. Complete this question by entering your answers in the tabs below.

Answer 1

1) Credit Date Feb 02 General Journal Petty Cash Cash Debit $340 $340 Nakashima Gallery Petty Cash Payments Report Delivery expense Feb 23 Delivery of customers merchandise Mileage expense Feb 14 Reimbursement for mileage $68 Postage expense Feb 12 Express delivery of contract $7.65 Feb 27 Purchased postage stamps $57 $64.65 Merchandise inventory (transportation-in) $32.50 Feb 9 Feb 25 COD charges on purchases COD charges on purchases $10.90 $43.40 Office supplies expense Feb5 Purchased paper for copier $15.95 Feb 20 Purchased stationery $67.77 $83.72 Total $282.77

Date Account Details Debit Credit Feb 28 Delivery Expense $23 Merchandise Inventory $43.40 Mileage Expense $68 Office Supplies $83.72 Postage $64.65 Cash Short and Over $34.17 Cash $316.94 Feb 28 Petty Cash $90 Cash $90