Exercise Palmona Company establishes a $230 petty cash fund on January 1. On January 8, the fund shows $115 in cash along with receipts for the following expenditures: postage, $47; transportation-in, $15; delivery expenses, $17; and miscellaneous expenses, $36. 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: (Algo) Petty cash fuha a. To reimburse the fund. b. To reimburse the fund and increase it to $280. Hint. Make two entries. View transaction list Journal entry worksheet 1 Date January 01 2 Record entry 3

Record the journal entry to establish the petty cash fund. Note: Enter debits before credits. 4 General Journal Clear entry Debit Credit View general journal >

Journal entry worksheet Record the journal entry to establish the petty cash fund. Note: Enter debits before credits