Ret Palmona Co. establishes a $260 petty cash fund on January 1. On January 8, the fund shows $145 in cash along with receipts for the following expenditures: postage, $48; transportation-in. $14: delivery expenses, $16; and miscellaneous expenses. $37. Paimona 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 $310 on January 8, assuming no entry in part 2. (Hint: Make two separate entries for part 3.) Answer is complete but not entirely correct. General Journal No Date Credit Debit 260 1 Jan 01 Petty cash Cash 260 2 Jan 08 Postage expense Transportation in Delivery expense Miscellaneous expenses Cash 48 14 16 37 115 . 3 Jan 08 Postage expense Transportation in Delivery expense Miscellaneous expenses Cash 48 14 16 37 OOO 115 . 4 Jan 08 Petty cash 50 FR Prev 1 of 1 Next