Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory. reb. 2 Wrote a $340 check to establish a petty cash fund. 5 Purchased paper for the copier for $15.35 that is immediately used. 9 Paid $34.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 12 Paid $8.35 pontage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager, $75 for mileage on her car. 20 Purchased office paper for $67.77 that is immediately used. 23 Paid a courier $16 to deliver merchandise sold to a customer, terms POB destination. 25 Paid $11.80 shipping charges (transportation-in) on merchandise purchased for resale, terns FOB shipping point. These costs are added to merchandise inventory. 27 Daid $51 for postage expenses. 28 The fund had $21.72 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 in inereased by $70 to a total of $410. 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. reb. 2 Wrote a $340 check to establish a petty cash fund. 5 Purchased paper for the copier for $15.35 that is immediately used. 9 Paid $34.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 12 Paid $8.35 pontage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager, $75 for mileage on her car. 20 Purchased office paper for $67.77 that is immediately used. 23 Paid a courier $16 to deliver merchandise sold to a customer, terms POB destination. 25 Paid $11.80 shipping charges (transportation-in) on merchandise purchased for resale, terns FOB shipping point. These costs are added to merchandise inventory. 27 Daid $51 for postage expenses. 28 The fund had $21.72 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 in inereased by $70 to a total of $410. 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.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section: Chapter Questions
Problem 4AP
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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.
2 Mrote a 5340 check to establish a petty cash fund.
5 Purchased paper for the copier for $15.35 that is immediately used.
9 Paid $34.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point.
These costs are added to merchandise inventory.
12 Paid $8.35 postage to deliver a contract to a client.
14 Reimbursed Adina Sharon, the manager, $75 tor mileage on her car.
20 Purchased office paper for $67.77 that is immediately used.
23 Paid a courier $16 to deliver merchandise sold to a customer, terms POB destination.
25 Paid $11.80 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point.
These costs are added to merchandise inventory.
27 Paid $51 for postage expenses.
28 The fund had $21.72 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 in inereased by $70 to a total of $410.
Teb.
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.
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