Shelton Gallery had the following petty cash transactions in February of the current year. Feb. 2 Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Bo Brown, the petty cashier. 5 Purchased bond paper for the copier for $16.55 that is immediately used. 9 Paid $34.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Shelton uses the perpetual system to account for merchandise inventory. 12 Paid $7.55 postage to express mail a contract to a client. 14 Reimbursed Alli Buck, the manager, $73 for business mileage on her car. 20 Purchased stationery for $68.87 that is immediately used. 23 Paid a courier $17 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $12.00 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $58 for postage expenses. 28 The fund had $25.52 remaining in the petty cash box. 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 $140 to a total of $490.

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

Feb.	2		Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Bo Brown, the petty cashier.
	5		Purchased bond paper for the copier for $16.55 that is immediately used.
	9		Paid $34.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Shelton uses the perpetual system to account for merchandise inventory.
	12		Paid $7.55 postage to express mail a contract to a client.
	14		Reimbursed Alli Buck, the manager, $73 for business mileage on her car.
	20		Purchased stationery for $68.87 that is immediately used.
	23		Paid a courier $17 to deliver merchandise sold to a customer, terms FOB destination.
	25		Paid $12.00 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.
	27		Paid $58 for postage expenses.
	28		The fund had $25.52 remaining in the petty cash box. 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 $140 to a total of $490.

Prepare the journal entry to establish the petty cash fund.

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. Sort the payments into the appropriate categories and total the expenditures in each category. (Round your answers to 2 decimal places.)
 

Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount. (Round your answers to 2 decimal places.)