Problem 6-3A (Algo) Establishing, reimbursing, and increasing petty cash LO P2 Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory. February 2 Wrote a $350 check to establish a petty cash fund. February 5 Purchased paper for the copier for $14.75 that is immediately used. February 9 Paid $38.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. February 12 Paid $7.95 postage to deliver a contract to a client. February 14 Reimbursed Adina Sharon, the manager, $66 for mileage on her car. February 20 Purchased office paper for $68.77 that is immediately used. February 23 Paid a courier $15 to deliver merchandise sold to a customer, terms FOB destination. February 25 Paid $11.80 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. February 27 Paid $52 for postage expenses. February 28 The fund had $23.26 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 $120 to a total of $470. 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 1 Required 2 Required 3 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. Note: Round your answers to 2 decimal places. Delivery expense Mileage expense Postage expense NAKASHIMA GALLERY Petty Cash Payments Report (for February) Merchandise inventory (transportation-in) 0.00 0.00 Show less▲

Problem 6-3A (Algo) Establishing, reimbursing, and increasing petty cash LO P2 Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory. February 2 Wrote a $350 check to establish a petty cash fund. February 5 Purchased paper for the copier for $14.75 that is immediately used. February 9 Paid $38.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. February 12 Paid $7.95 postage to deliver a contract to a client. February 14 Reimbursed Adina Sharon, the manager, $66 for mileage on her car. February 20 Purchased office paper for $68.77 that is immediately used. February 23 Paid a courier $15 to deliver merchandise sold to a customer, terms FOB destination. February 25 Paid $11.80 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. February 27 Paid $52 for postage expenses. February 28 The fund had $23.26 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 $120 to a total of $470. 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 1 Required 2 Required 3 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. Note: Round your answers to 2 decimal places. Delivery expense Mileage expense Postage expense NAKASHIMA GALLERY Petty Cash Payments Report (for February) Merchandise inventory (transportation-in) 0.00 0.00 Show less▲

Problem 6-3A (Algo) Establishing, reimbursing, and increasing petty cash LO P2 Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory. February 2 Wrote a $350 check to establish a petty cash fund. February 5 Purchased paper for the copier for $14.75 that is immediately used. February 9 Paid $38.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. February 12 Paid $7.95 postage to deliver a contract to a client. February 14 Reimbursed Adina Sharon, the manager, $66 for mileage on her car. February 20 Purchased office paper for $68.77 that is immediately used. February 23 Paid a courier $15 to deliver merchandise sold to a customer, terms FOB destination. February 25 Paid $11.80 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. February 27 Paid $52 for postage expenses. February 28 The fund had $23.26 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 $120 to a total of $470. 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 1 Required 2 Required 3 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. Note: Round your answers to 2 decimal places. Delivery expense Mileage expense Postage expense NAKASHIMA GALLERY Petty Cash Payments Report (for February) Merchandise inventory (transportation-in) 0.00 0.00 Show less▲

College Accounting, Chapters 1-27

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter12: Special Journals

Section: Chapter Questions

Problem 11SPA

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Problem 6-3A (Algo) Establishing, reimbursing, and increasing petty cash LO P2
Nakashima Gallery had the following petty cash transactions in February of the
current year. Nakashima uses the perpetual system to account for merchandise
inventory.
February 2 Wrote a $350 check to establish a petty cash fund.
February 5 Purchased paper for the copier for $14.75 that is immediately used.
February 9 Paid $38.50 shipping charges (transportation-in) on merchandise purchased for
resale, terms FOB shipping point. These costs are added to merchandise inventory.
February 12 Paid $7.95 postage to deliver a contract to a client.
February 14 Reimbursed Adina Sharon, the manager, $66 for mileage on her car.
February 20 Purchased office paper for $68.77 that is immediately used.
February 23 Paid a courier $15 to deliver merchandise sold to a customer, terms FOB destination.
February 25 Paid $11.80 shipping charges (transportation-in) on merchandise purchased for
resale, terms FOB shipping point. These costs are added to merchandise inventory.
February 27 Paid $52 for postage expenses.
February 28 The fund had $23.26 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 $120 to a total of $470.
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 1
Required 2 Required 3
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.
Note: Round your answers to 2 decimal places.
Delivery expense
Mileage expense
Postage expense
NAKASHIMA GALLERY
Petty Cash Payments Report (for February)
Merchandise inventory (transportation-in)
Office supplies expense
Total
< Required 1
Required 3
>
0.00
0.00
0.00
Show less▲

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Record the following transactions: A. Started a petty cash fund in the amount of $1,000. B. Replenished petty cash fund using the following expenses: Auto $61, Office Expenses $23, Postage Expense $57, Miscellaneous Expenses $30. C. The company has decided to reduce the petty cash fund to $600.
On July 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare journal entries for the following transactions: A. On July 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $125, Supplies $368, Postage Expense $325, Repairs and Maintenance Expense $99, Miscellaneous Expense $259. The cash on hand at this time was $38. B. On June 14, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $425, Supplies $95, Postage Expense $240, Repairs and Maintenance Expense $299, Miscellaneous Expense $77. The cash on hand at this time was $110. C. On June 23, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $251, Supplies $188, Postage Expense $263, Repairs and Maintenance Expense $182, Miscellaneous Expense $203. The cash on hand at this time was $93. D. On June 29, the company determined that the petty cash fund needed to be decreased to $1,000. E. On June 30, the petty cash fund needed replenishment, as it was month end. The following are the receipts: Auto Expense $14, Supplies $75, Postage Expense $150, Repairs and Maintenance Expense $121, Miscellaneous Expense $39. The cash on hand at this time was $603.

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