Q.7

Chen Company established a $275 petty cash fund on January 1, Year 1. Required a. Is the establishment of the petty cash fund an asset source, use, or exchange transaction? b. Show the establishment of the petty cash fund in a horizontal statements model like the following one: c. Record the establishment of the fund in general journal format.

Complete this question by entering your answers in the tabs below. Required A Required B Required C Is the establishment of the petty cash fund an asset source, use, or exchange transaction? Is the establishment of the petty cash fund an asset source, use, or exchange transaction? Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Show the establishment of the petty cash fund in a horizontal statements model like the following one: (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NA for not affected. Enter any decreases to account balances with a minus sign.) CHEN COMPANY Statements Model + Stockholders' Revenue Equity Assets Liabilities Expense = Net Income Cash Flow Cash + Petty Cash Complete this question by entering your answers in the tabs below. Required A Required B Required C Record the establishment of the fund in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record entry for petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal