Palmona Company establishes a $250 petty cash fund on January 1. On January 8, the fund shows $137 in cash along with receipts for the following expenditures: postage, $50; transportation-in, $11; delivery expenses, $13; and miscellaneous expenses, $39. 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 $300. Hint Make two entries. View transaction list Journal entry worksheet Record the journal entry to establish the petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Palmona Company establishes a $250 petty cash fund on January 1. On January 8, the fund shows $137 in cash along with receipts for the following expenditures: postage, $50; transportation-in, $11; delivery expenses, $13; and miscellaneous expenses, $39. 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 $300. Hint. Make two entries. View transaction list Journal entry worksheet Record the reimbursement of the petty cash fund. Note: Enter debits before credits. General Journal Debit Credit Date January 08 Palmona Company establishes a $250 petty cash fund on January 1. On January 8, the fund shows $137 in cash along with receipts for the following expenditures: postage, $50; transportation-in, $11; delivery expenses, $13; and miscellaneous expenses, $39. 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 $300. Hint. Make two entries. View transaction list Journal entry worksheet Record the reimbursement of the petty cash fund. Note: Enter debits before credits. General Journal Debit Credit Date January 08 Palmona Company establishes a $250 petty cash fund on January 1. On January 8, the fund shows $137 in cash along with receipts for the following expenditures: postage, $50; transportation-in, $11; delivery expenses, $13; and miscellaneous expenses, $39. 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 $300. Hint Make two entries. View transaction list Journal entry worksheet