Cameron Co$.$ established a $$150$ petty cash fund on January $1,2017.$ One week later, on January $8,$ the fund contained $$29\mathrm{.}25$ in cash and receipts for these expenditures: postage, $$42\mathrm{.}00$; transportation$-$in$,$ $$27\mathrm{.}00$; store supplies, $$32\mathrm{.}75$; and a withdrawal of $$19\mathrm{.}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 $1.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

$1$

Record the entry to establish the fund.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $01,2017,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

$$

$$

b$.$ Prepare a summary of the petty cash payments and record the entry to reimburse the fund on January $8.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your answers to $2$ decimal places.$)$

Journal entry worksheet

$1$

Record the entry to reimburse the fund.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $08,2017,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

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