Effect of establishing a petty cash fundMacon Timber Company established a $150 petty cash...

Effect of establishing a petty cash fund

Macon Timber Company established a $150 petty cash fund on January 1, 2012.

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.