Reference no: EM132592359

Question - Establishing, reimbursing, and increasing petty cash

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 Writes a $400 check to establish a petty cash fund.

Feb 5 Purchased paper for the copier for $14.15 that is immediately used.

Feb 9 Paid $32.50 shipping charges (transportation in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.

Feb 12 Paid $7.95 postage to deliver a contract to a client

Feb 14 Reimbursed Adina Sharon, the manager, $68 for mileage on her car.

Feb 20 Purchased office paper for $67.77 that is immediately used.

Feb 23 Paid a courier $20 to deliver merchandise sold to a customer, terms FOB destination.

Feb 25 Paid $13.10 shipping charges (transportation in) on merchandise purchased for resale, terms FOB shipping point. These cost are added to merchandise inventory.

Feb 27 Paid $54 for postage expenses

Feb 28 The fund had $120.42 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.

Feb 28 The petty cash fund amount is increased by $100 to a total of $500.

Required - How use the perpetual system to organize this information?