Problem $6-3$A Establishing, reimbursing, and increasing petty

cash LO P$2$ 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. $2$ Wrote

a $$400$ check to establish a petty cash fund. $5$ Purchased paper for

the copier for $$14\mathrm{.}15$ that is immediately used. $9$ Paid $$32\mathrm{.}50$

shipping charges $($transportation$-$in$)$ on merchandise purchased for

resale, terms FOB shipping point. These costs are added to

merchandise inventory. $12$ Paid $$7\mathrm{.}95$ postage to deliver a contract

to a client. $14$ Reimbursed Adina Sharon, the manager, $$68$ for

mileage on her car. $20$ Purchased office paper for $$67\mathrm{.}77$ that is

immediately used. $23$ Paid a courier $$20$ to deliver merchandise sold

to a customer, terms FOB destination. $25$ Paid $$13\mathrm{.}10$ shipping

charges $($transportation$-$in$)$ on merchandise purchased for resale,

terms FOB shipping point. These costs are added to merchandise

inventory. $27$ Paid $$54$ for postage expenses. $28$ The fund had

$$120\mathrm{.}42$ 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. $28$ 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 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.