Anything in bold or in a bold '?' needs to be answered.

Recording Petty Cash Fund Transactions

Illustrate the effect on the accounts and financial statements of the following transactions. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

a. Established a petty cash fund of $750.

Statement of Cash Flows

Balance Sheet

Income Statement

Assets

=

Liabilities

+

Stockholders' Equity

Cash

+

Petty Cash

=

No Effect

+

No Effect

?

?

Statement of Cash Flows

Income Statement

No effect

No effect

No effect

b. The amount of cash in the petty cash fund is now $140. Replenished the fund, based on the following summary of petty cash receipts: office supplies, $325; miscellaneous selling expense, $200; miscellaneous administrative expense, $85. Enter account decreases and cash outflows as negative amounts.

Statement of Cash Flows	Balance Sheet								Income Statement
	Assets			=	Liabilities	+	Stockholders' Equity
	Cash	+	Office Supplies	=	No Effect	+		Retained Earnings
	?		?
Statement of Cash Flows								Income Statement
Operating ?								Miscellaneous selling expense	?
								Which one: cost of merchandise sold, misc. admin expense, office supplies, sales OR no effect?	?
								No effect

No effect