On May 1, 2013, Cook Company established a petty cash fund in the amount of $200.
a) Is the establishment of the fund an asset source, asset use, or asset exchange transaction?
b) Record the establishment of the petty cash fund in the horizontal financial statements model, below. Show dollar amounts of increases and decreases; for accounts that are not affected, indicate NA. If the event affects cash flow, classify the cash flow as operating, investing, or financing.

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The Answer of On May 1, 2013, Cook Company established a petty cash fund in the amount of $200.
a) Is the establishment of the fund an asset source, asset use, or asset exchange transaction?
b) Record the establishment of the petty cash fund in the horizontal financial statements model, below. Show dollar amounts of increases and decreases; for accounts that are not affected, indicate NA. If the event affects cash flow, classify the cash flow as operating, investing, or financing.

On May 1, 2013, Cook Company Established a Petty Cash