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Lairo Inc. established a petty cash fund of $150 on January 2. On January 31, the fund contained cash of $8.20 and vouchers for the following cash payments:Postage and office supplies .......$76.30Entertainment expense ........$36.50Maintenance expense ..........$25.00The three distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, and (3) recognition of expenses and replenishment of the fund.
Required:
a. Record each of the three events in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or a financing activity (FA). Use NA to indicate that an account was not affected by the event.
b. Record the events in general journal format.
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