Palmona Company establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along with receipts 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. 1. Prepare the entry to establish the fund on January 1. 2. 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 $450. Hint: Make two entries. View transaction list View journal entry worksheet No General Journal Debit Credit IN Date January 01 1 200 Petty cash Cash 200 2 January 08 74 Postage expense Merchandise inventory Delivery expense Miscellaneous expenses Cash 29 16 43 162 January 08 250 Petty cash Cash 250