Palmona 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 joumal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and
it to $450 on January 8, assuming no entry in part 2. Hint Make two separate entries for part 3.