Problem 6-3A (Algo) Establishing, reimbursing, and increasing petty cash LO P2Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system toaccount for merchandise inventory.February 2 Wrote a $350 check to establish a petty cash fund.February 5 Purchased paper for the copier for $15.75 that is immediately used.February 9 Paid $42.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shippingpoint. These costs are added to merchandise inventory.February 12 Paid $7.85 postage to deliver a contract to a client.February 14 Reimbursed Adina Sharon, the manager, $75 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 $11.10 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shippingpoint. These costs are added to merchandise inventory.February 27 Paid $51 for postage expenses.February 28 The fund had $24.66 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected andexchanged them for a check to reimburse the fund for expenditures.February 28 The petty cash fund amount is increased by $100 to a total of $450.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 3Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postageexpense, merchandise inventory (for transportation-in), and office supplies expense.Note: Round your answers to 2 decimal places.

A journal entry is a record of a business deal in the accounting system of an organization. Journal…

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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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