Palmona Co. establishes a $150 petty cash fund on January 1. On January 8, the fund shows $61 in cash along with receipts for the following expenditures: postage, $35; transportation-in, $14; delivery expenses, $16; and miscellaneous expenses, $24. Palmona uses the perpetual system in accounting for merchandise inventory. Required:
a. Prepare journal entries to establish the fund on January 1.
b. Prepare journal entry to reimburse the petty cash fund on January 8.
c. Prepare journal entries to both reimburse the fund and increase it to $450 on January 8.

Palmona Co Journal entries

1.

Jan-01

Dr Petty cash150

Cr Cash 150

2.

Jan-08

Dr Postage expense35

Dr Merchandise inventory14

Dr Delivery expense16

Dr Miscellaneous expenses24

Cr Cash 89

3.Jan-08

Dr Postage expense35

Dr Merchandise inventory14

Dr Delivery expense16

Dr Miscellaneous expenses24

Cash 89

4.

Jan-08

Dr Petty cash 300

(450-150)

Cr Cash 300

Explanation:

1. To establish petty cash fund

2.To record reimbursement

3.To record reimbursement

4. To record increase in fund balance from 150 to 450

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi