Palmona co establishes a 200 petty cash fund on january 1


Palmona 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; and miscellaneous expenses, $ 43. Palmona 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, 
(3) Both reimburse the fund and increase it to $ 450 on January 8, assuming no entry in part 2.

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Cost Accounting: Palmona co establishes a 200 petty cash fund on january 1
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