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Palmona Co. establishes a $300 petty cash fund on January 1. On January 8, the fund shows $199 in cash along with receipts for the
Palmona Co. establishes a $300 petty cash fund on January 1. On January 8, the fund shows $199 in cash along with receipts for the following expenditures: postage, $45; transportation-in, $10; delivery expenses, $12; and miscellaneous expenses, $34. 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.) Answer is not complete. General Journal Debit Credit No 1 Date Jan 01 Petty cash Cash 2 Jan 08 Postage expense Transportation-in Delivery expense Miscellaneous expenses Cash es xx sex se 3 Jan 08 Petty cash Cash X 4 Jan 08 Petty cash Cash 8
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