7

Morris Company established a petty cash fund with a $400 balance. Which of the following statements is incorrect? There is no net effect on current assets. A journal entry is needed to debit the Cash account and credit the Petty Cash account for $400. The petty cash custodian cashes a check for $400 and places the currency in the petty cash fund box. The sum of the cash plus the total of the petty cash tickets should equal $400 at all times