Cameron Co. established a $188 petty cash fund on January 1, 2023. One week later, on January 8, the fund contained $36.47 in cash and receipts for these expenditures: postage, $52.64; transportation-in. $33.84; store supplies, $41.11; and a withdrawal of $23.94 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? Overstated Understated

Cameron Co. established a $188 petty cash fund on January 1, 2023. One week later, on January 8 , the fund contained $36.47 in cash and receipts for these expenditures: postage, $5264; transportation-in, $33.84; store supplies, $4111; and a withdrawal of $23.94 by Jim Cameron, the owner. Cameron uses the perpetual method to account for merchandise inventory. o. 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 answern to 2 declmal pleces.) Analysis Component: If the January 8 enty to reimburse the fund were not recorded and financal statements were prepared for the month of Janudy. would protit be over-or understated? Overstated Understated