Problem 6-3A (Algo) 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. February 2 Wrote a $350 check to establish a petty cash fund. February 5 Purchased paper for the copier for $14.75 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 $7.95 postage to deliver a contract to a client. February 14 Reimbursed Adina Sharon, the manager, $66 for mileage on her car. February 20 Purchased office paper for $68.77 that is immediately used. February 23 Paid a courier $15 to deliver merchandise sold to a customer, terms FOB destination. February 25 Paid $11.80 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. February 27 Paid $52 for postage expenses. February 28 The fund had $23.26 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 $120 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. Complete this question by entering your answers in the tabs below. 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 NAKASHIMA GALLERY Petty Cash Payments Report (for February) Merchandise inventory (transportation-in) 0.00 0.00 Show less▲