Exercise $8-10($Algo$)$ Petty cash fund accounting LO P$2$

Palmona Company establishes a $$180$ petty cash fund on January $1.$ On January B$,$ the fund shows $$65$ in cash along with receipts for

the following expenditures: postage, $$48$; transportation$-$in$,$ $$14$; delivery expenses, $$16$; and miscellaneous expenses, $$37.$ 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 $$230.$ Hint. Make two entries.

Journal entry worksheet

Record the reimbursement of the petty cash fund.

Note: Erier debis befone credits.