Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory. February 2 Wrote a $360 check to establish a petty cash fund. February 5 Purchased paper for the copier for $14.95 that is immediately used. February 9 Paid $38.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. February 12 Paid $7.45 postage to deliver a contract to a client. February 14 Reimbursed Adina Sharon, the manager, $74 for mileage on her car. February 20 Purchased office paper for $68.77 that is immediately used. February 23 Paid a courier $17 to deliver merchandise sold to a customer, terms FOB destination. February 25 Paid $10.90 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. February 27 Paid $59 for postage expenses. February 28 The fund had $22.77 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. February 28 The petty cash fund amount is increased by $110 to a total of $470. 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.
Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory. February 2 Wrote a $360 check to establish a petty cash fund. February 5 Purchased paper for the copier for $14.95 that is immediately used. February 9 Paid $38.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. February 12 Paid $7.45 postage to deliver a contract to a client. February 14 Reimbursed Adina Sharon, the manager, $74 for mileage on her car. February 20 Purchased office paper for $68.77 that is immediately used. February 23 Paid a courier $17 to deliver merchandise sold to a customer, terms FOB destination. February 25 Paid $10.90 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. February 27 Paid $59 for postage expenses. February 28 The fund had $22.77 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. February 28 The petty cash fund amount is increased by $110 to a total of $470. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to
account for merchandise inventory.
February 2 Wrote a $360 check to establish a petty cash fund.
February 5 Purchased paper for the copier for $14.95 that is immediately used.
February 9 Paid $38.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping
point. These costs are added to merchandise inventory.
February 12 Paid $7.45 postage to deliver a contract to a client.
February 14 Reimbursed Adina Sharon, the manager, $74 for mileage on her car.
February 20 Purchased office paper for $68.77 that is immediately used.
February 23 Paid a courier $17 to deliver merchandise sold to a customer, terms FOB destination.
February 25 Paid $10.90 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping
point. These costs are added to merchandise inventory.
February 27 Paid $59 for postage expenses.
February 28 The fund had $22.77 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.
February 28 The petty cash fund amount is increased by $110 to a total of $470.
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.
Transcribed Image Text:Required 1 Required 2 Required 3
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.
Note: Round your answers to 2 decimal places.
Delivery expense
Mileage expense
Postage expense
Merchandise inventory (transportation-in)
Office supplies expense
NAKASHIMA GALLERY
Petty Cash Payments Report (for February)
Total
0.00
0.00
0.00
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education