Fresh Foods established a petty cash fund of $100 on January 2. On January 31, the fund

Question:

Fresh Foods established a petty cash fund of $100 on January 2. On January 31, the fund contained cash of $9.20 and vouchers for the following cash payments:

Maintenance expense  .....................$61.50
Office supplies ....................................12.50
Transportation expense ....................15.00

The four distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, (3) recognition of expenses (4) replenishment of the fund.


Required
Show each of the four events in a horizontal statements model like the following one. In the Statement of Cash Flows 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.

Balance Sheet Income Statement Statement of Cash Flows = Llab. + Equity Assets Cash + Petty Cash = Net Inc. Exp. Rev.

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: