Nakashima Gallery had the following petty cash transactions in February of the current year. Wrote a $400 check, cashed it,

Nakashima Gallery had the following petty cash transactions in February of the current year.
Wrote a $400 check, cashed it, and gave the proceeds and the petty cashbox to Chloe
Addison, the petty cashier.
Purchased bond paper for the copier for $14.15 that is immediately used.
Paid $32.50 COD shipping charges on merchandise purchased for resale, terms FOB
shipping point. Nakashima uses the perpetual system to account for merchandise inventory.
Paid $7.95 postage to express mail a contract to a client.
Reimbursed Adina Sharon, the manager, $68 for business mileage on her car.
Purchased stationery for $67.77 that is immediately used.
Paid a courier $20 to deliver merchandise sold to a customer, terms FOB destination.
Paid $13.10 COD shipping charges on mercl1andise purchased for resale, terms FOB
shipping point.
Paid $54 for postage expenses.
The fund had $120.42 remaining in the petty cash box. Sorted the petty cash receipts by
accounts affected and exc11anged them for a check to reimburse the fund for expenditures.
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 these categories: delivery expense, mileage
expense, postage expense, merchandise inventory (for transportation-in), and office supplies
expense. Sort the payments into the appropriate categories and total the expenditures in each
category. (Round your answers to 2 decimal places.)

3. Prepare the journal entries for part 2 to both (a) reimburse and (IJ) increase the fund amount.
(Round your answers to 2 decimal places.)