Exercise 8-6 Petty Cash Fund accounting LO P2

Palmona Co. establishes a $240 petty cash fund on January 1. On January 8, the fund shoes $147 in cash along with receipts for the following expenditures: $38; transportation-in, $13; delivery expenses, $15; and misc. expenses, $27. Palmona uses the perpetual system in accounting for merchandise inventory.

Prepare journal entries to (1) establish the fun on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and increase it to $290 on January 8, assuming no entry in part 2. (Hint: make two separate entries for part 3.)

Prepare the Journal Entry to establish the petty cash fund.
Date	General Journal	Debit	Credit
Jan 01

Record the reimbursement of the petty cash fund.
Date	General Journal	Debit	Credit
Jan 08

Record the reimbursement of the petty cash fund.
Date	General Journal	Debit	Credit
Jan 08

Record the reimbursement of the petty cash fund.
Date	General Journal	Debit	Credit
Jan 08