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Maintenance expense Office supplies Transportation expense $28.20 37.60 18.80 The four distinct accounting events affecting the petty cash fu made to employeer

Maintenance expense Office supplies Transportation expense $28.20 37.60 18.80 The four distinct accounting events affecting the petty cash fu made to employeer

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 6-14A (Algo) Effect of petty cash events on the financial statements LO 6-4 Fresh Foods established a petty cash fund of $94 on January 2. On January 31, the fund contained cash of $9.40 and vouchers for the following cash payments: Maintenance expense Office supplies Transportation expense The four 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 including any amount of cash short or over and (4) replenishment of the fund. Assume the Company uses the alternative approach to petty cash expense recognition and replenishment. Required Show each of the four events in the following horizontal statements model. (Enter any decreases to account balances with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or leave the cell blank if there is no effect. Round your answers to 2 decimal places.) No 1234 1. Cash Assets + Petty Cash (94.00)+ + Balance Sheet + + $28.20 37.60 18.80 94.00 = (84.60) = FRESH FOODS Horizontal Statements Model Stockholders' Equity Retained Earnings (84.60) Revenue Income Statement Expense = Net Income 84.60 = (84.60) Statement of Cash Flows (84.60) OA
Transcribed Image Text:Exercise 6-14A (Algo) Effect of petty cash events on the financial statements LO 6-4 Fresh Foods established a petty cash fund of $94 on January 2. On January 31, the fund contained cash of $9.40 and vouchers for the following cash payments: Maintenance expense Office supplies Transportation expense The four 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 including any amount of cash short or over and (4) replenishment of the fund. Assume the Company uses the alternative approach to petty cash expense recognition and replenishment. Required Show each of the four events in the following horizontal statements model. (Enter any decreases to account balances with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or leave the cell blank if there is no effect. Round your answers to 2 decimal places.) No 1234 1. Cash Assets + Petty Cash (94.00)+ + Balance Sheet + + $28.20 37.60 18.80 94.00 = (84.60) = FRESH FOODS Horizontal Statements Model Stockholders' Equity Retained Earnings (84.60) Revenue Income Statement Expense = Net Income 84.60 = (84.60) Statement of Cash Flows (84.60) OA
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