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Exercise 8-10 Petty cash fund accounting LO P2 Palmona Co. establishes a $280 petty cash fund on January 1. On January 8, the fund shows $191 in cash along with receipts for the following expenditures: postage, $36; transportation-in, $13; delivery expenses, $15; and miscellaneous expenses, $25. 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 $330 on January 8, assuming no entry in part 2. Hint: Make two separate entries for part 3. View transaction list Journal entry worksheet 1 2 Prepare the journal entry to establish the petty cash fund. Date Jan 01 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal