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Cameron Co . established a $ 1 8 6 petty cash fund on January 1 , 2 0 2 3 . One week later, on
Cameron Co established a $ petty cash fund on January One week later, on January the fund contained $ in cash and receipts for these expenditures: postage, $; transportationin $; store supplies, $; and a withdrawal of $ 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
b Prepare a summary of the petty cash payments and record the entry to reimburse the fund on January Round your answers to decimal places.
Analysis Component:
If the January 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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