Palmona Company establishes a $$260$ petty cash fund on January $1.$ On January $8,$ the fund shows $$169$ in cash along with receipts for the following expenditures: postage, $$36$; transportation$-$in$,$ $$14$; delivery expenses, $$16$; and miscellaneous expenses, $$25.$ 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 $$310.$ 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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