Nakashima Gallery had the following petty cash transactions inFebruary of the current year.
Feb.
2
Wrote a $400 check, cashed it, and gave the proceeds and thepetty cashbox to Chloe Addison, the petty cashier.
5
Purchased bond paper for the copier for $14.15 that isimmediately used.
9
Paid $32.50 COD shipping charges on merchandise purchased forresale, terms FOB shipping point. Nakashima uses the perpetualsystem to account for merchandise inventory.
12
Paid $7.95 postage to express mail a contract to a client.
14
Reimbursed Adina Sharon, the manager, $68 for business mileageon her car.
20
Purchased stationery for $67.77 that is immediately used.
23
Paid a courier $20 to deliver merchandise sold to a customer,terms FOB destination.
25
Paid $13.10 COD shipping charges on merchandise purchased forresale, terms FOB shipping point.
27
Paid $54 for postage expenses.
28
The fund had $120.42 remaining in the petty cash box. Sorted thepetty cash receipts by accounts affected and exchanged them for acheck to reimburse the fund for expenditures.
28
The petty cash fund amount is increased by $100 to a total of$500.
Required:
1.
Prepare the journal entry to establish the petty cash fund.
2.
Prepare a petty cash payments report for February with thesecategories: delivery expense, mileage expense, postage expense,merchandise inventory (for transportation-in), and office suppliesexpense. Sort the payments into the appropriate categories andtotal the expenditures in each category. (Round youranswers to 2 decimal places.)
3. Prepare the journal entries for part 2 to both (a)reimburse and (b) increase the fund amount.(Roundyour answers to 2 decimal places.)
Nakashima Gallery had the following petty cash transactions inFebruary of the current year. |
Feb. | 2 | Wrote a $400 check, cashed it, and gave the proceeds and thepetty cashbox to Chloe Addison, the petty cashier. | |
5 | Purchased bond paper for the copier for $14.15 that isimmediately used. | ||
9 | Paid $32.50 COD shipping charges on merchandise purchased forresale, terms FOB shipping point. Nakashima uses the perpetualsystem to account for merchandise inventory. | ||
12 | Paid $7.95 postage to express mail a contract to a client. | ||
14 | Reimbursed Adina Sharon, the manager, $68 for business mileageon her car. | ||
20 | Purchased stationery for $67.77 that is immediately used. | ||
23 | Paid a courier $20 to deliver merchandise sold to a customer,terms FOB destination. | ||
25 | Paid $13.10 COD shipping charges on merchandise purchased forresale, terms FOB shipping point. | ||
27 | Paid $54 for postage expenses. | ||
28 | The fund had $120.42 remaining in the petty cash box. Sorted thepetty cash receipts by accounts affected and exchanged them for acheck to reimburse the fund for expenditures. | ||
28 | The petty cash fund amount is increased by $100 to a total of$500. |
Required: | |
1. | Prepare the journal entry to establish the petty cash fund. |
2. | Prepare a petty cash payments report for February with thesecategories: delivery expense, mileage expense, postage expense,merchandise inventory (for transportation-in), and office suppliesexpense. Sort the payments into the appropriate categories andtotal the expenditures in each category. (Round youranswers to 2 decimal places.) |
3. Prepare the journal entries for part 2 to both (a)reimburse and (b) increase the fund amount.(Roundyour answers to 2 decimal places.) |
