1.Petty Cash Fund.

Peterson Co. established a $1500 petty cash fund on January 1, 2017. One week later, on January 8, the fund contained $290.25 in cash and receipts for these expenditures: postage, $42.00; transportation-in, $27.00; store supplies, $320.75; and a withdrawal of $190.00 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