almona 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, and (3) both reimburse the fund and increase it to $450 on January 8, assuming no entry in part 2. Hint: Make two separate entries for part 3.

Please see  answer in explanation column

Explanation:

1`. To record establishment of fund

DateAccount titles and explanation     Debit          Credit

Jan 1            Petty cash                     $200  

                       Cash                                                  $200

2.To record the  reimbursement  the petty cash fund.

DateAccount titles and explanation     Debit          Credit

Jan 8    Postage expense                            $74  

Merchandise inventory                                   $29  

Delivery expense                                             $16  

Miscellaneous expenses                           $43  

Cash                                                                                $162

DateAccount titles and explanation     Debit          Credit

Jan 08     Petty cash                             $250  

                          Cash                                                   $250

 calculation

Petty cash= $450-$200 = $250

answera major piece of legislation affecting the financial industry and containing significant privacy provisions for individuals;