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Austin Company established a petty cash fund by issuing a check for $294 and appointing Steve Mack as petty cash custodian. Mack had vouchers for the following petty cash payments during the month. Stamps Miscellaneous items Employee supper money Taxi fare Window-washing service $51 25 66 46 82 There was $22 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 (1) establishment of the fund, (2) reimbursements made to employees, (3) recognition of expenses, and (4) replenishment of the fund. Assume the company uses a traditional approach to petty cash expense recognition and replenishment. Problem 6-24A (Algo) Part d d. Show the effects of the events in Requirement (a) on the financial statements using a horizontal statements model. (In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Leave blank to indicate that an account was not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) Event 123 Balance Sheet Answer is not complete. Effect of Events on the Financial Statements Horizontal Statements Model Assets Stockholders' Equity Liabilities + Revenue Cash (294) (272) + + Petty Cash Retained Earnings 294 = + |= + = + Income Statement Expenses Net Income Statement of Cash Flows = = (272) = 272x 272 OA

Austin Company established a petty cash fund by issuing a check for $294 and appointing Steve Mack as petty cash custodian. Mack had vouchers for the following petty cash payments during the month. Stamps Miscellaneous items Employee supper money Taxi fare Window-washing service $51 25 66 46 82 There was $22 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 (1) establishment of the fund, (2) reimbursements made to employees, (3) recognition of expenses, and (4) replenishment of the fund. Assume the company uses a traditional approach to petty cash expense recognition and replenishment. Problem 6-24A (Algo) Part d d. Show the effects of the events in Requirement (a) on the financial statements using a horizontal statements model. (In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Leave blank to indicate that an account was not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) Event 123 Balance Sheet Answer is not complete. Effect of Events on the Financial Statements Horizontal Statements Model Assets Stockholders' Equity Liabilities + Revenue Cash (294) (272) + + Petty Cash Retained Earnings 294 = + |= + = + Income Statement Expenses Net Income Statement of Cash Flows = = (272) = 272x 272 OA

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Austin Company established a petty cash fund by issuing a check for $294 and appointing Steve Mack as petty cash custodian. Mack had vouchers for the following petty cash payments during the month. Stamps Miscellaneous items Employee supper money Taxi fare Window-washing service $51 25 66 46 82 There was $22 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 (1) establishment of the fund, (2) reimbursements made to employees, (3) recognition of expenses, and (4) replenishment of the fund. Assume the company uses a traditional approach to petty cash expense recognition and replenishment. Problem 6-24A (Algo) Part d d. Show the effects of the events in Requirement (a) on the financial statements using a horizontal statements model. (In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Leave blank to indicate that an account was not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) Balance Sheet Answer is not complete. Effect of Events on the Financial Statements Horizontal Statements Model Stockholders' Event Assets Equity Liabilities Revenue Cash + Petty Cash Retained Earnings 1. (294) + 294 + 2. + = + 3. (272) + (272) Income Statement Expenses Net Income Statement of Cash Flows = = 272 272 OA
Transcribed Image Text:Austin Company established a petty cash fund by issuing a check for $294 and appointing Steve Mack as petty cash custodian. Mack had vouchers for the following petty cash payments during the month. Stamps Miscellaneous items Employee supper money Taxi fare Window-washing service $51 25 66 46 82 There was $22 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 (1) establishment of the fund, (2) reimbursements made to employees, (3) recognition of expenses, and (4) replenishment of the fund. Assume the company uses a traditional approach to petty cash expense recognition and replenishment. Problem 6-24A (Algo) Part d d. Show the effects of the events in Requirement (a) on the financial statements using a horizontal statements model. (In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Leave blank to indicate that an account was not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) Balance Sheet Answer is not complete. Effect of Events on the Financial Statements Horizontal Statements Model Stockholders' Event Assets Equity Liabilities Revenue Cash + Petty Cash Retained Earnings 1. (294) + 294 + 2. + = + 3. (272) + (272) Income Statement Expenses Net Income Statement of Cash Flows = = 272 272 OA
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