Smithville Timber Company established a $180 petty cash fund on January 1, 2013.

Required
a. Is the establishment of the petty cash fund an asset source, use, or exchange transaction?
b. Record 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 journalformat.

Transcribed Image Text:

Assets - Liah. Equity Rev Exp. Net Inc. Cash Flow Cash Petty Cash