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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 $186 petty cash fund on January 1,2023. One week later, on January 8, the fund contained $36.09 in cash and receipts for these expenditures: postage, $52.08; transportation-in, $33.48; store supplies, $40.67; and a withdrawal of $23.68 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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