Palmona Co. establishes a $220 petty cash fund on January 1. On January 8, the fund shows $113 in cash along with receipts for the following expenditures: postage, $48; transportation-in, $10; delivery expenses, $12; and miscellaneous expenses, $37. Palmona uses the perpetual system in accounting for merchandise inventory.

Prepare journal entry to establish the fund on January 1, reimburse it on January 8, and reimburse the fund and increase it to $270 on January 8, assuming no entry in part 2. (Hint: Make two separate entries for part 3.)

1. Record the journal entry to establish the Petty Cash fund.

2. Record the reimbursement of the petty cash fund.

3. Record the increase of the petty cash fund.