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

question 17

Essay

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.

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Definitions:

Nontariff Trade Barrier

Restrictive regulations and policies other than tariffs that countries use to control the amount of trade across their borders, including quotas, embargoes, or standards.

Domestic Subsidies

Financial aid provided by a government to support a domestic industry or sector, reducing the cost of production or services for national companies.

Import Licensing

A government policy requiring businesses to obtain official permission before importing certain goods, often used to control the amount of goods entering a country.

European Works Council

A body representing European employees, established to provide information and consultation rights on transnational matters affecting workers in the European Union.