Exercise 8-10 Petty cash fund accounting LO P2 Palmona Co. establishes a $300 petty cash fund on January 1. On January 8, the fund shows $203 in cash along with receipts for the following expenditures: postage, $41; transportation-in, $12, delivery expenses, $14; and miscellaneous expenses, $30. 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 $350 on January 8, assuming no entry in part 2. Hint: Make two separate entries for part 3. View transaction list Journal entry worksheet Record the increase of the petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit Jan 08 Record entry Clear entry View general journal