Consider the following events: 1. A petty cash fund of $75 was established on April 1, Year 1. 2. Employees were reimbursed when they presented petty cash vouchers to the petty cash custodian. 3. On April 30, Year 1, the petty cash fund contained vouchers totaling $65.47 plus $10.33 of currency. Required Answer the following questions: a. How did the establishment of the petty cash fund affect (increase, decrease, or have no effect on) total assets? O Increase Decrease No effect b. What is the amount of total petty cash expenses to be recognized during April? (Round your answer to 2 decimal places.) Net charge to expense
Consider the following events: 1. A petty cash fund of $75 was established on April 1, Year 1. 2. Employees were reimbursed when they presented petty cash vouchers to the petty cash custodian. 3. On April 30, Year 1, the petty cash fund contained vouchers totaling $65.47 plus $10.33 of currency. Required Answer the following questions: a. How did the establishment of the petty cash fund affect (increase, decrease, or have no effect on) total assets? O Increase Decrease No effect b. What is the amount of total petty cash expenses to be recognized during April? (Round your answer to 2 decimal places.) Net charge to expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answer full question.
![### Petty Cash Fund Management: Educational Scenario
#### Consider the following events:
1. A petty cash fund of $75 was established on April 1, Year 1.
2. Employees were reimbursed when they presented petty cash vouchers to the petty cash custodian.
3. On April 30, Year 1, the petty cash fund contained vouchers totaling $65.47 plus $10.33 of currency.
---
#### Required
Answer the following questions:
a. **How did the establishment of the petty cash fund affect (increase, decrease, or have no effect on) total assets?**
- Increase
- Decrease
- No effect
b. **What is the amount of total petty cash expenses to be recognized during April? (Round your answer to 2 decimal places.)**
- **Net charge to expense:**
- [_____]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb75e2346-ebf2-4e14-802c-14c74b6109ef%2F0b0a0096-c73c-4f89-b50d-b3692e3c4338%2F74pgkh9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Petty Cash Fund Management: Educational Scenario
#### Consider the following events:
1. A petty cash fund of $75 was established on April 1, Year 1.
2. Employees were reimbursed when they presented petty cash vouchers to the petty cash custodian.
3. On April 30, Year 1, the petty cash fund contained vouchers totaling $65.47 plus $10.33 of currency.
---
#### Required
Answer the following questions:
a. **How did the establishment of the petty cash fund affect (increase, decrease, or have no effect on) total assets?**
- Increase
- Decrease
- No effect
b. **What is the amount of total petty cash expenses to be recognized during April? (Round your answer to 2 decimal places.)**
- **Net charge to expense:**
- [_____]
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