Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 6-14A (Algo) Effect of petty cash events on the financial statements LO 6-4 Fresh Foods established a petty cash fund of $84 on January

image text in transcribed
Exercise 6-14A (Algo) Effect of petty cash events on the financial statements LO 6-4 Fresh Foods established a petty cash fund of $84 on January 2 . On January 31 , the fund contained cash of $8.40 and vouchers for the following cash payments: 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. Note: 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Quality Auditing

Authors: Denis Pronovost

1st Edition

0873894766, 9780873894760

More Books

Students also viewed these Accounting questions