roblem 8-3A 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 to account for merchandise inventory. Feb. 2 Wrote a $350 check to establish a petty cash fund. 5 Purchased paper for the copier for $15.15 that is immediately used. 9 Paid $42.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 12 Paid $8.55 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 $68.77 that is immediately used. 23 Paid a courier $16 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $11.70 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 27 Paid $53 for postage expenses. 28 The fund had $25.69 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 $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. Required 1 Required 2 Required 3Prepare the journal entry to establish the petty cash fund.View transaction listJournal entry worksheet< 1Wrote a $350 check to establish a petty cash fund.Note: Enter debits before credits.DateFeb 02Record entryGeneral JournalClear entry< Required 1DebitCreditView general journalRequired 2 > Problem 8-3A 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.Feb. 2 Wrote a $350 check to establish a petty cash fund.5 Purchased paper for the copier for $15.15 that is immediately used.9 Paid $42.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costsare added to merchandise inventory.12 Paid $8.55 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 $68.77 that is immediately used.23 Paid a courier $16 to deliver merchandise sold to a customer, terms FOB destination.25 Paid $11.70 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costsare added to merchandise inventory.27 Paid $53 for postage expenses.28 The fund had $25.69 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchanged themfor a check to reimburse the fund for expenditures.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 1Required 2 Required 3Prepare the journal entry to establish the petty cash fund.View transaction listJournal entry worksheet

Introduction: A journal entry is a record of a business deal in the accounting system of an…

roblem 8-3A 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. Feb. 2 Wrote a $350 check to establish a petty cash fund. 5 Purchased paper for the copier for $15.15 that is immediately used. 9 Paid $42.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 12 Paid $8.55 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 $68.77 that is immediately used. 23 Paid a courier $16 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $11.70 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 27 Paid $53 for postage expenses. 28 The fund had $25.69 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 $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.

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Internal Control And Cash

Section: Chapter Questions

Problem 7.2BPR

See similar textbooks

roblem 8-3A 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.

Feb.	2	Wrote a $350 check to establish a petty cash fund.
	5	Purchased paper for the copier for $15.15 that is immediately used.
	9	Paid $42.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
	12	Paid $8.55 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 $68.77 that is immediately used.
	23	Paid a courier $16 to deliver merchandise sold to a customer, terms FOB destination.
	25	Paid $11.70 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
	27	Paid $53 for postage expenses.
	28	The fund had $25.69 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 $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.

Required 1 Required 2 Required 3
Prepare the journal entry to establish the petty cash fund.
View transaction list
Journal entry worksheet
< 1
Wrote a $350 check to establish a petty cash fund.
Note: Enter debits before credits.
Date
Feb 02
Record entry
General Journal
Clear entry
< Required 1
Debit
Credit
View general journal
Required 2 >

Problem 8-3A 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.
Feb. 2 Wrote a $350 check to establish a petty cash fund.
5 Purchased paper for the copier for $15.15 that is immediately used.
9 Paid $42.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs
are added to merchandise inventory.
12 Paid $8.55 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 $68.77 that is immediately used.
23 Paid a courier $16 to deliver merchandise sold to a customer, terms FOB destination.
25 Paid $11.70 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs
are added to merchandise inventory.
27 Paid $53 for postage expenses.
28 The fund had $25.69 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 $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 the journal entry to establish the petty cash fund.
View transaction list
Journal entry worksheet

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Cash and cash equivalents

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

Financial & Managerial Accounting

Accounting

ISBN:

9781337119207

Author:

Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:

Cengage Learning