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blakeolson0800
blakeolson0800
06.03.2020 • 
Business

A Petty cash fund LO 6-4 [The following information applies to the questions displayed below.]

Austin Co. established a petty cash fund by issuing a check for $300 and appointing Steve Mack as petty cash custodian. Mack had vouchers for the following petty cash payments during the month:

Stamps $62
Miscellaneous items 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.

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.)

Problem 6-24A Part c

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.)

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.)

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