Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the

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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 5 Wrote a $400 check to establish a petty cash fund. Purchased paper for the copier for $14.15 that is

9. 12. 14. 20. 23. 25. 27. 28. 28. Paid $32.50 shipping charges (transportation-in) on merchandise purchased

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 part 2 to both

(a) Reimburse

(b) Increase the fund amount.

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