Palmona Co. establishes a $220 petty cash fund on January 1. On January 8, the fund shows $123 in cash along with receipts for the following expenditures: postage

Palmona Co. establishes a $220 petty cash fund on January 1. On January 8, the fund shows $123 in
cash along with receipts for the following expenditures: postage, $4 1; transportation-in, $ 12; delivery
expenses, $ 14; and miscellaneous expenses, $30. Palmona uses the perpetual system in accounting
for merchandise inventory.

(1) Prepare journal entry to establish the fund on January.

(2) Prepare journal entry to reimburse it on January 8.

(3)Prepare journal entries to both reimburse the fund and increase it to $270 on January 8, assuming
no entry in part 2.