Problem 6-3A (Algo) Establishing, reimbursing, and increasing petty cash LO P2
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ng petty cash transactions in February of the current year. Nakashima uses the
perpetual system to account for merchandise inventory.
February 2 Wrote a $340 check to establish a petty cash fund.
February 5 Purchased paper for the copier for $14.95 that is immediately used.
February 9 Paid $34.50 shipping charges (transportation-in) on merchandise purchased
for resale, terms FOB shipping point. These costs are added to merchandise
inventory.
February 12 Paid $8.15 postage to deliver a contract to a client.
February 14 Reimbursed Adina Sharon, the manager, $72 for mileage on her car.
February 20 Purchased office paper for $67.77 that is immediately used.
February 23 Paid a courier $20 to deliver merchandise sold to a customer, terms FOB
destination.
February 25 Paid $10.90 shipping charges (transportation-in) on merchandise purchased
for resale, terms FOB shipping point. These costs are added to merchandise
inventory.
February 27 Paid $58 for postage expenses.
February 28 The fund had $23.39 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.
February 28 The petty cash fund amount is increased by $150 to a total of $490.
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 Required Required
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2
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Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount.
Note: Round your answers to 2 decimal places.
View transaction list
Journal entry worksheet
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Record the reimbursement of the petty cash fund.
Note: Enter debits before credits.
S.No/Date
Account Title
Debit Credit
February Delivery expense
20.00
28
Mileage expense
72.00
Postage expense
66.15
Merchandise inventory
45.40
Office supplies expense
82.72
Cash over and short