Paloma Co, establishes a $270 petty cash fund on January 1.

On January 8, the fund shows $169 in cash along with receipts for the following expenditures: postage $43, transportation-in- $ 12, delivery expenses ,$14 , and miscellaneous expenses, $32. Paloma uses the perpetual system in accounting for merchandise inventory.

Prepare Journal entries to (1) establish the fund on January 1 (2) reimburse it on January 8 and (3) both reimburse the fund and increase it to $320 on January 8, assuming no entry in part 2. Hint: make two separate entries for part 3.