Question
Austin Company established a petty cash fund by issuing a check for $300 and appointing Steve Mack as petty cash custodianMack had vouchers for the
Austin Company established a petty cash fund by issuing a check for $300 and appointing Steve Mack as petty cash custodianMack had vouchers for the following petty cash payments during the month
Stamps 62
Miscellaneous itens 20
Employee supper money 70
Taxi fare 50
Window washing service 75
There was $21 of currency in the petty cash box at the time it was replenished . The four distinct accounting events affecting the petty cash fund for the period were () establishment of the fund (2)reimbursements made to employees, (3) recognition of expenses (Note: all expenses are recorded in total as miscellaneous expense), and (4) replenishment of the fund. Assume the Company uses the traditional approach to petty cash expense recognition and replenishment.
Required:
a. Show each of the four events in a horizontal statements model.
c. Identify the events depicted in Requirement a as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE).
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