Final answer:
A petty cash payments report for February includes tallying expenses in categories such as delivery, mileage, postage, merchandise inventory for transportation, and office supplies, summing up the total petty cash spent.
Step-by-step explanation:
To prepare a petty cash payments report for February, you must first list all expenses incurred in the month under the appropriate categories. These categories include delivery expense, mileage expense, postage expense, merchandise inventory (specifically for transportation-in), and office supplies expense. The report will tally the expenses for each category and provide a total amount of petty cash spent for the month.
For instance, if the company spent $100 on delivery, $50 on mileage, $30 on postage, $200 on merchandise inventory, and $70 on office supplies, the report would be organized as follows:
- Delivery Expense: $100
- Mileage Expense: $50
- Postage Expense: $30
- Merchandise Inventory (Transportation-in): $200
- Office Supplies Expense: $70
The total petty cash spent in February would then be the sum of these expenses. Essential for businesses to track and manage their small, everyday operational expenses, a petty cash payments report helps maintain financial control and provides a clear record for accounting purposes.