Problem 6-3A Establishing, reimbursing, and increasing petty cash LO P2 Nakashima Gallery had the following petty...

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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. Nakashima uses the perpetual system to account for merchandise inventory. Feb. 2 Wrote a $350 check to establish a petty cash fund. 5 Purchased paper for the copier for $16.35 that is immediately used. 9 Paid $38.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 12 Paid $7.45 postage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager, $67 for mileage on her car. 20 Purchased office paper for $67.77 that is immediately used. 23 Paid a courier $22 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $12.10 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 27 Paid $58 for postage expenses. 28 The fund had $23.22 remaining in the petty cashbox. 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 $480. 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. 3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. Journal entry worksheet < 1 > Wrote a $350 check to establish a petty cash fund. Note: Enter debits before credits. General Journal Debit Credit Date Feb 02 Record entry Clear entry View general journal 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. (Round your answers to 2 decimal places.) NAKASHIMA GALLERY Petty Cash Payments Report (for February) Delivery expense Mileage expense Postage expense 0.00 Merchandise inventory (transportation-in) 0.00 Office supplies expense 0.00 Total View transaction list Journal entry worksheet < 1 2 > Record the reimbursement of the petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit Feb 28 Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 2 > Record the increase of the petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit Feb 28 Record entry Clear entry View general journal

 · Answer

1)  Date  General Journal      Debit  Credit                  2-Feb Petty cash   350       cash     350                                     Petty cash payment Report (for February)       Delivery expense           23-Feb Delivery of customer's merchandise  22     Mileage expense           14-Feb  Reimbursement of mileage   67     Postage expense           12-Feb Express delivery of product  7.45       27-Feb purchased postage stamps  58  65.45      Merchandise invnetory (transportation-in)         9-Feb COD charges on purchases  38.5       25-Feb COD charges on purchases  12.1 50.6     Office supplies expense          5-Feb Purchased paper for copier   16.35       20-Feb Purchased stationery    67.77  84.12      total       289.17                            Date  General Journal      Debit  Credit                 28-Feb Delivery expense   22       Mileage expense   67       postage expense    65.45        Merchandise inventory  50.6       office supplies expense   84.12       Cash over and short    37.61        Cash.      326.78                            28-Feb Petty cash   130       csh     130                                     .

Problem 6-3A Establishing, reimbursing, and increasing petty cash LO P2 Nakashima Gallery had the following petty...

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1)	Date	General Journal	Debit	Credit

	2-Feb	Petty cash	350
		cash		350


		Petty cash payment Report (for February)
	Delivery expense
	23-Feb	Delivery of customer's merchandise		22
	Mileage expense
	14-Feb	Reimbursement of mileage		67
	Postage expense
	12-Feb	Express delivery of product	7.45
	27-Feb	purchased postage stamps	58	65.45
	Merchandise invnetory (transportation-in)
	9-Feb	COD charges on purchases	38.5
	25-Feb	COD charges on purchases	12.1	50.6
	Office supplies expense
	5-Feb	Purchased paper for copier	16.35
	20-Feb	Purchased stationery	67.77	84.12
	total			289.17


	Date	General Journal	Debit	Credit

	28-Feb	Delivery expense	22
		Mileage expense	67
		postage expense	65.45
		Merchandise inventory	50.6
		office supplies expense	84.12
		Cash over and short	37.61
		Cash.		326.78


	28-Feb	Petty cash	130
		csh		130