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.
1. Prepare the entry to establish the fund on January 1.
2. 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 $340. Hint: Make two entries. fastessayy
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