NetPerks Co. establishes a $230 petty cash fund on January 1. On January 8, the fund shows $115 in cash along with receipts for the following expenditures: postage, $49; transportation-in, $13; delivery expenses, $15; and miscellaneous expenses, $38. NetPerks uses the perpetual system in accounting for merchandise inventory.

NetPerks Co. establishes a $230 petty cash fund on January 1. On January 8, the fund shows $115 in cash along with receipts for the following expenditures: postage, $49; transportation-in, $13; delivery expenses, $15; and miscellaneous expenses, $38. NetPerks uses the perpetual system in accounting for merchandise inventory.
Prepare journal entry to establish the fund on January 1

Prepare journal entry to reimburse it on January 8

Prepare journal entries to both reimburse the fund and increase it to $280 on January 8, assuming no entry in part 2.

Explanation:

Merchandise Inventory: Transportation-in costs are included in Merchandise Inventory under a perpetual system.