Problem: Palmona Company
Palmona Company establishes a $290 petty cash fund on January 1. On January 8, the fund shows $203 in cash along with receipts for the following expenditures: postage, $36; transportation-in, $12; delivery expenses, $14; and miscellaneous expenses, $25. 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:
o To reimburse the fund.
o To reimburse the fund and increase it to $340. Hint: Make two entries. Fastessay.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.