Short Answer. Colgate Co. 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

Miscellaneous expenses: $43

Total $162

Colgate Co. uses the perpetual system in accounting for merchandise inventory.

Prepare the journal entry to establish the fund on January

Prepare the journal entry to reimburse the fund on January 8.