Effect of establishing a petty cash fundManu Company established a $300 petty cash fund on...

Effect of establishing a petty cash fund

Manu Company established a $300 petty cash fund on January 1, 2011.

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 journal format.