Consider the following events: 1. A petty cash fund of $200 was established on April 1, Year

Question:

Consider the following events:
1. A petty cash fund of $200 was established on April 1, Year 1.
2. Employees were reimbursed when they presented petty cash vouchers to the petty cash custodian.
3. On April 30, Year 1, the petty cash fund contained vouchers totaling $196.50 plus $2.20 of currency.


Required
Answer the following questions:
a. How did the establishment of the petty cash fund affect (increase, decrease, or have no effect on) total assets?
b. What is the amount of total petty cash expenses to be recognized during April?
c. When are petty cash expenses recognized (at the time of establishment, reimbursement, or replenishment)?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Introductory Financial Accounting for Business

ISBN: 978-1260299441

1st edition

Authors: Thomas Edmonds, Christopher Edmonds

Question Posted: