Exercise $6-10($Static$)$ Petty cash fund accounting LO P$2$

Palmona Company establishes a $$200$ petty cash fund on January $1.$ On January $8,$ the fund shows $$38$ in cash along with receipts for the following expenditures: postage, $$74$; transportation$-$in$,$ $$29$; delivery expenses, $$16$; and miscellaneous expenses, $$43.$ Palmona uses the perpetual system in accounting for merchandise inventory.

Prepare the entry to establish the fund on January $1.$

Prepare the entry to reimburse the fund on January $8$ under two separate situations:

a$.$ To reimburse the fund.

b$.$ To reimburse the fund and increase it to $$450.$ Hint. Make two entries.

Answer is complete but not entirely correct.

$\backslash$table$[[$No$,$Date,,,Debit,Credit$],[1,$January $01,$Petty cash,V$,200$vv$,],[,$Cash,V$,,200$vv$],[2,$January $08,$Postage expense,V$,38\backslash$times $,],[,$Merchandise inventory,V$,11\backslash$times $,],[,$Delivery expense,V$,13$x$,],[,$Miscellaneous expenses,V$,27\backslash$times $,],[,$Cash,V$,,89\backslash$times $],[3,$January $08,$Postage expense,$($V$),15\backslash$times $,],[,$Merchandise inventory,V$,17\backslash$times $,],[,$Delivery expense,V$,41\backslash$times $,]]$