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Cameron Co. established a $166 petty cash fund on January 1, 2023. One week later,...

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Accounting

Cameron Co. established a $166 petty cash fund on January 1, 2023. One week later, on January 8, the fund contained $32.29 in cash and receipts for these expenditures: postage, $46.48; transportation-in, $29.88; store supplies, $36.27; and a withdrawal of $21.08 by Jim Cameron, the owner. Cameron uses the perpetual method to account for merchandise inventory. a. Prepare the journal entry to establish the fund on January 1. b. Prepare a summary of the petty cash payments and record the entry to reimburse the fund on January 8. (Round your answers to 2 decimal places.) Analysis Component: If the January 8 entry to reimburse the fund were not recorded and financial statements were prepared for the month of January, would profit be over- or understated? multiple choice Overstated Understated

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