Check My Work 1 Problem 8 3a Establishing Reimbursing And Increasing Petty Cash Lo P2 36 66 Points Nakashima Gallery H 1 (51.5 KiB) Viewed 59 times
Check my work 1 Problem 8-3A Establishing, reimbursing, and increasing petty cash LO P2 36.66 points Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory. 8 03:06:14 Feb. eBook References 2 Wrote a $350 check to establish a petty cash fund. 5 Purchased paper for the copier for $16.75 that is immediately used. 9 Paid $44.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 12 Paid $7.35 postage to deliver a contract to a client. 14 Reimbursed Adina Sharon, the manager, $71 for mileage on her car. 20 Purchased office paper for $67.77 that is immediately used. 23 Paid a courier $24 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $11.10 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 27 Paid $50 for postage expenses. 28 The fund had $24.71 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 $50 to a total of $400. 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. M
Journal entry worksheet < 1 2 > Record the reimbursement of the petty cash fund. Note: Enter debits before credits. Credit Date Feb 28 General Journal Mileage expense Merchandise inventory Delivery expense Office supplies expense Postage expense Cash over and short Cash Debit 71.00 55.60 24.00 84.52 57.35
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