Shiller Company established a petty cash fund \(\$ 5,000\) on February 1. During February, the company paid for the following expenditures out of the petty cash funds:

On February 28, the clerk handling the petty cash fund asked for replenishing the fund and found the amount left to be \(\$ 540\). Meanwhile, in view of the expansion of operations in the near future, the company decided to increase the size of the petty cash fund to be \(\$ 7,000\).
Required:
1. Prepare the journal entries for establishing the fund.
2. Prepare the journal entries for replenishing the fund.
3. Prepare journal entries for the increase in the fund size.

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Office Supplies. Postage Expense Freight-out. Miscellaneous Expense $2,550 460 550 885