Towle Company established a petty cash fund for $500 on January 1,2016.At the end of the month,the petty cash fund contained cash of $238.60 and vouchers for the following cash payments: freight on goods shipped to customers,$67.00;postage,$75.00;miscellaneous expense,$79.22;entertainment expense,$36.00.
Three distinct events affected the petty cash fund during January:
1.establishment of the fund;
2.making payments for various items from the fund;and
3.recognizing expenses and replenishing the fund at the end of the month
Required:
a)Record each of the events in the horizontal statements model below.Indicate with the dollar amount of the increase or decrease,or NA if the element is not affected.
b)Prepare journal entries for these events.

Question

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The Answer of Towle Company established a petty cash fund for $500 on January 1,2016.At the end of the month,the petty cash fund contained cash of $238.60 and vouchers for the following cash payments: freight on goods shipped to customers,$67.00;postage,$75.00;miscellaneous expense,$79.22;entertainment expense,$36.00.
Three distinct events affected the petty cash fund during January:
1.establishment of the fund;
2.making payments for various items from the fund;and
3.recognizing expenses and replenishing the fund at the end of the month
Required:
a)Record each of the events in the horizontal statements model below.Indicate with the dollar amount of the increase or decrease,or NA if the element is not affected.
b)Prepare journal entries for these events.

Towle Company Established a Petty Cash Fund for $500 on January