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  3. palmona company establishes a $250 petty cash fund

Palmona Company establishes a $250 petty cash fund on January 1. On January 8, the...

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Accounting

Palmona Company establishes a $250 petty cash fund on January 1. On January 8, the fund shows $151 in cash along with receipts for the following expenditures: postage, $44; transportation-in, $10; delivery expenses, $12; and miscellaneous expenses, $33. Palmona uses the perpetual system in accounting for merchandise inventory.
Prepare the entry to establish the fund on January 1.
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.
Journal entry worksheet
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Record the journal entry to establish the petty cash fund.
Note: Enter debits before credits.
\table[[Date,General Journal,Debit,Credit],[January 01,,,],[,,,],[,,,],[,,,],[,,,]]
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