[The following information applies to the questions displayed below.]

Austin Co. established a petty cash fund by issuing a check for $231 and appointing Steve Mack as petty cash custodian. Mack had vouchers for the following petty cash payments during the month:

Stamps	$41
Miscellaneous items	14
Employee supper money	56
Taxi fare	36
Window-washing service	71

There was $11 of currency in the petty cash box at the time it was replenished.

Required

a.	Prepare all general journal entries necessary to (1) establish the fund, (2) reimburse employees, (3) recognize the expenses and replenish the fund. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

Note: Enter debits before credits.

Record the entry to establish the fund

Event	General Journal	Debit	Credit
1

Journal entry worksheet

Note: Enter debits before credits.

Record the entry to reimburse employees

Event	General Journal	Debit	Credit
2

Journal entry worksheet

Note: Enter debits before credits.

Record the entry to recognize the expenses and replenish the fund.

Event	General Journal	Debit	Credit
3

c.

Identify the event depicted in each journal entry recorded in Requirement a as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). (Select "NE" if there is no effect.)

Event Number	Type of Event
1.
2.
3.

d.

Record the effects of the events in Requirement a on the financial statements using a horizontal statements model like the following one. (In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an account was not affected by the event. Enter any decreases to account balances with a minus sign.)

Effect of Events on the Financial Statements

No.

Assets

=

Liab.

+

Equity

Rev.

Exp.

=

Net Inc.

Cash Flow

Cash

+

Petty Cash

1.

2.

3.