Illustrate the effect on the accounts and financial statements of the following transactions: a. Established a petty

Question:

Illustrate the effect on the accounts and of the following transactions:
a. Established a petty cash fund of $1,000.
b. The amount of cash in the petty cash fund is now $315. Replenished the fund, based on the following summary of petty cash receipts: office supplies, $425; miscellaneous selling expense, $220; miscellaneous administrative expense, $40

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...