Palmona Company establish a $$200$ petty cash on Jan $1.$ On Jan $8,$ the fund shows $$38$ in cash along with receipts for the following expenditures:

Postage $$74$

Transportation$-$In $$29$

Delivery expenses $$16$

Miscellaneous expenses $$43$

Palmona uses the perpetual system in accounting for merchandising inventory. Palmona Company establishes a $$200$ petty cash fund on January $1.$ On January $8,$ the fund shows $$38$ in cash along

with recelpts for the following expenditures: postage, $$74$; transportation$-$In$,$ $$29$; delivery expenses, $$16$; and

miscellaneous expenses, $$43.$ Palmona uses the perpetual system In accounting for merchandise Inventory.

Prepare the entry to establish the fund on January $1.$

Prepare the entry to relmburse the fund on January $8$ under two separate situations:

a$.$ To relmburse the fund.

b$.$ To relmburse the fund and Increase it to $$450.$ Hint Make two entrles.

Journal entry worksheet

Record the increase of the petty cash fund.

Note: Enter debits before credits.