On May 1,2016,Campbell Company Established a Petty Cash Fund in the Amount

question 87

Essay

On May 1,2016,Campbell Company established a petty cash fund in the amount of $400.
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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Definitions:

Assignment

A task or piece of work allocated to someone as part of a job or course of study.

Lawsuit

A legal action initiated by one party against another for the enforcement or protection of a right, or the redress or prevention of a wrong.

Debris

Scattered fragments, typically of something wrecked or destroyed.

Statute Of Frauds

State-level legislation that addresses the enforceability of contracts that fail to meet the requirements set forth in the statute; serves to protect promisors from poorly considered oral contracts by requiring certain contracts to be in writing.