Chen Company established a $1,125 petty cash fund on January 1, Year 1. Required a. Is...

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Accounting

Chen Company established a $1,125 petty cash fund on January 1,Year 1. Required a. Is the establishment of the petty cash fund anasset source, use, or exchange transaction?
b. Show the establishment of the petty cash fund in a horizontalstatements model like the following one: (In the Cash Flow column,use the initials OA to designate operating activity, IA forinvesting activity, and FA for financing activity. Enter anydecreases to account balances with a minus sign. Not all cells inthe "Cash Flows" column may require an input - leave cells blank ifthere is no corresponding input needed.)

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Chen Company established a $1,125 petty cash fund on January 1,Year 1. Required a. Is the establishment of the petty cash fund anasset source, use, or exchange transaction?b. Show the establishment of the petty cash fund in a horizontalstatements model like the following one: (In the Cash Flow column,use the initials OA to designate operating activity, IA forinvesting activity, and FA for financing activity. Enter anydecreases to account balances with a minus sign. Not all cells inthe "Cash Flows" column may require an input - leave cells blank ifthere is no corresponding input needed.)