161.Journalize the entries to record the following:
Sept. 1 Established a petty cash fund of $350.
30 The amount of cash in the petty cash fund is now $130. The fund is replenished based on the followingreceipts: office supplies, $116; postage, $100.
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162.(a) Where are cash equivalents disclosed in the financial statements?
(b)List three examples of cash equivalents.
165.The Garden Gate, Inc. reported the following data in its August 31 annual report.
Cash and cash equivalents$485 625
Cash flow from operations(630,000)
(a)What is the company’s “cash burn” per month?
(b)What is the company’s ratio of cash to monthly cash expenses?
(c) Interpret the ratio you computed in part 2. What are the implications for The Garden Gate, Inc.?