Exercise 6-10 Petty cash fund accounting LO P2 Palmona Co. establishes a $140 petty cash fund on January 1. On January 8, the fund shows $39 in cash along with receipts for the following expenditures: postage, $45; transportation-in, $10; delivery expenses, $12; and miscellaneous expenses, $34. Palmona uses the perpetual system in accounting for merchandise inventory. Prepare journal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and increase it to $190 on January 8, assuming no entry in part 2. Hint: Make two separate entries for part 3. View transaction list Journal entry worksheet Prepare the journal entry to establish the petty cash fund. Note: Enter debits before credits. Date General Journal Credit Debit 190 Jan 01 Petty cash Cash 190 Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the reimbursement of the petty cash fund. Note: Enter debits before credits. Credit Date Jan 08 Debit 39 12 General Journal Postage expense Merchandise inventory Delivery expense Miscellaneous expenses Cash 14 28 93 Record entry Clear entry View general journal Journal entry worksheet Record the reimbursement of the petty cash fund. Note: Enter debits before credits. Credit Date Jan 08 Debit 39 12 14 General Journal Postage expense Merchandise inventory Delivery expense Miscellaneous expenses Cash Petty cash Cash 28 93 50 50 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 Record the increase of the petty cash fund. Note: Enter debits before credits. General Journal Debit Credit Date Jan 08 Record entry Clear entry View general journal