Palmona Company establishes a $$250$ petty cash fund on January $1.$ On January $8,$ the fund shows $$151$ in cash along with receipts for the following expenditures: postage, $$44$; transportation$-$in$,$ $$10$; delivery expenses, $$12$; and miscellaneous expenses, $$33.$ Palmona uses the perpetual system in accounting for merchandise inventory.

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

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

a$.$ To reimburse the fund.

b$.$ To reimburse the fund and increase it to $$300.$ Hint. Make two entries.

Journal entry worksheet

$1$

$2$

$3$

$4$

Record the journal entry to establish the petty cash fund.

Note: Enter debits before credits.

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