Question

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 $825. Balance Sheet Assets Liabilities + Stockholders' Equity Statement of Cash Flows Income Statement b. The amount of cash in the petty cash fund is now $124. Replenished the fund, based on the following summary of petty cash receipts: office supplies, $413; miscellaneous selling expense, $144; miscellaneous administrative expense, $144. Enter account decreases and cash outflows as negative amounts. Balance Sheet Assets Liabilities + Stockholders' Equity Statement of Cash Flows Income Statement

Answer 1

a
	Assets		Liabilities	Stockholders' Equity
	Cash	Petty cash	No effect	No effect
	-825	825
Statement of cash flows			Income statement
No effect			No effect

b
	Assets		Liabilities	Stockholders' Equity
	Cash	Office Supplies	No effect	Retained Earnings
	-701	413		-288
Statement of cash flows			Income statement
Operating	-701		Miscellaneous selling expense	144
			Miscellaneous administrative expense	144