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Question - Cameron Co. established a $150 petty cash fund on January 1, 2017. One week later, on January 8, the fund contained $29.25 in cash and receipts for these expenditures: postage, $42.00; transportation-in, $27.00; store supplies, $32.75; and a withdrawal of $19.00 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 and record the entry to reimburse the fund on January 8.
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