Exercise 6-9 (Algo) Petty cash fund with an overage LO P2 EcoMart establishes a $1,750 petty cash fund on May 2. On May 30, the fund shows $706 in cash along with receipts for the following expenditures: transportation-in, $148; postage expenses, $523; and miscellaneous expenses, $380. The petty cashier could not account for a $7 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare the (1) May 2 entry to establish the fund, (2) May 30 entry to reimburse the fund [Hint Credit Cash Over and Short for $7 and credit Cash for $1,044), and (3) June 1 entry to increase the fund to $2,040. View transaction list Journal entry worksheet Record the May 2 entry to establish the fund. Note: Enter debits before credits. Date General Journal Debit Credit May 02 Journal entry worksheet Record the May 30 entry to reimburse the fund. Note: Enter debits before credits. Date General Journal Debit Credit May 30 Palmona Company establishes a $260 petty cash fund on January 1. On January 8, the fund shows $157 in cash along with receipts for the following expenditures: postage, $44; transportation-in, $12, delivery expenses, $14; and miscellaneous expenses, $33. Palmona uses the perpetual system in accounting for merchandise inventory. 1. Prepare the entry to establish the fund on January 1. 2. 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 $310. Hint. Make two entries. View transaction list Journal entry worksheet Record the journal entry to establish the petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Journal entry worksheet Record the reimbursement of the petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit January 08 Journal entry worksheet 1 2 3 Record the increase of the petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit January 08