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ID: 2559024 • Letter: I

Question

i secure https://newconnect.mheducation.com/flow/connect.htmlisReg=true&retumUrl; = https%3A%2F%2Fconnect.mheducation.com%2Fpaamweb%2Findex.htm %239 2 Fregistration%2Fsignup%25m-ghat nan sp 1 8-a 7 Wrote a $400 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier 5 Purchased bond paper for the copier for $14.15 that is inmediately used 9 Paid $32.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashina uses the perpetual system to account for merchandise inventory 12 Paid $7.95 postage to express mail a contract to a client 14 Reimbursed Adina Sharon, the manager, 568 for business mileage on 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 ??? shipping charges on merchandise purchased for resale, terns FOB shipping point 27 Paid $54 for postage expenses 28 The fund had $120.42 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchanged them ea ire ieine u: 1 mil tey sta oints e ioat i for a check to reimburse the fund for expenditures 28 The petty cash fund anount is increased by $180 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 3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount Ask Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage NAKASHIMA GALLERY Petty Cash Payments Re port (forF Delivery expense Mileage expense Postage expense 0.00 inventory (t Office supplies expense 0.00 Total

Explanation / Answer

1

Prepare the Journal entry to establish petty cash fund

Date

General Journal

Debit

Credit

Feb-02

Petty cash

400

     Cash

400

2

Prepare a petty cash payments report for febraury with the catagories

Nakashima Gallery

Petty cash Payments ( For february)

Date

$

$

Delivery expense

Feb-23

Delivery of customer mechandise

$20

Milege expense

Feb-14

Reimbursement for mileage

$68

Postage expense

Feb-12

Express delivery of contract

$7.95

Feb-27

Purchased postage stamps

$54

$61.95

Merchandise inventory (Transportation)

Feb-09

Cod charges on purhcases

$32.50

Feb-25

Cod charges on purhcases

$13.10

$45.60

Office supplies expense

Feb-05

Purchased paper for copier

$14.15

Feb-20

Purchased stationer

$67.77

$81.92

Total

$277.47

3

Prepare a journal entires for part 2 to both (a) remiburse (b) increase th fund amount

Date

General Journal

Debit

Credit

Feb-28

Mileage expense

$68

Merchandise inventory

$45.60

Delivery expense

$20

Office supplies expense

$81.92

Post expense

$61.95

Cash over and short [400-$277.47-120.42]

$2.11

        cash

$279.58

Feb-28

Petty cash

$100

     cash

$100

1

Prepare the Journal entry to establish petty cash fund

Date

General Journal

Debit

Credit

Feb-02

Petty cash

400

     Cash

400

2

Prepare a petty cash payments report for febraury with the catagories

Nakashima Gallery

Petty cash Payments ( For february)

Date

$

$

Delivery expense

Feb-23

Delivery of customer mechandise

$20

Milege expense

Feb-14

Reimbursement for mileage

$68

Postage expense

Feb-12

Express delivery of contract

$7.95

Feb-27

Purchased postage stamps

$54

$61.95

Merchandise inventory (Transportation)

Feb-09

Cod charges on purhcases

$32.50

Feb-25

Cod charges on purhcases

$13.10

$45.60

Office supplies expense

Feb-05

Purchased paper for copier

$14.15

Feb-20

Purchased stationer

$67.77

$81.92

Total

$277.47

3

Prepare a journal entires for part 2 to both (a) remiburse (b) increase th fund amount

Date

General Journal

Debit

Credit

Feb-28

Mileage expense

$68

Merchandise inventory

$45.60

Delivery expense

$20

Office supplies expense

$81.92

Post expense

$61.95

Cash over and short [400-$277.47-120.42]

$2.11

        cash

$279.58

Feb-28

Petty cash

$100

     cash

$100