Palmona co. establishes a $200 petty cash fund on january 1. on january 8, the fund shows $38 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; delivery expenses, $16; and miscellaneous expenses, $43. palmona uses the perpetual system in accounting for merchandise inventory. prepare journal entries to (1) establish the fund on january 1, (2) reimburse it on january 8, and (3) both reimburse the fund and increase it to $450 on january 8, assuming no entry in part 2. hint: make two separate entries for part 3.

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Kirnon clinic uses client-visits as its measure of activity. during july, the clinic budgeted for 3,250 client-visits, but its actual level of activity was 3,160 client-visits. the clinic has provided the following data concerning the formulas to be used in its budgeting: fixed element per month variable element per client-visitrevenue - $ 39.10personnel expenses $ 35,100 $ 10.30medical supplies 1,100 7.10occupancy expenses 8,100 1.10administrative expenses 5,100 0.20total expenses $ 49,400 $ 18.70the activity variance for net operating income in july would be closest to: