[The following information applies to the questions displayed below.] Fresh Foods established a petty cash fund of $275 on January 2. On January 31, the fund contained cash of $77.50 and vouchers for the following cash payments. Maintenance expense Office supplies $77.25 79.20 36.25 Transportation expense The three distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, and (3) recognition of expenses and replenishment of the fund. Assume the company uses the alternative approach to petty cash expense recognition and replenishment. Required a. Show each of the three events in a horizontal statements model. (In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or a financing
[The following information applies to the questions displayed below.] Fresh Foods established a petty cash fund of $275 on January 2. On January 31, the fund contained cash of $77.50 and vouchers for the following cash payments. Maintenance expense Office supplies $77.25 79.20 36.25 Transportation expense The three distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, and (3) recognition of expenses and replenishment of the fund. Assume the company uses the alternative approach to petty cash expense recognition and replenishment. Required a. Show each of the three events in a horizontal statements model. (In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or a financing
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
3
![No.
1.
Required information
[The following information applies to the questions displayed below.]
Fresh Foods established a petty cash fund of $275 on January 2. On January 31, the fund
contained cash of $77.50 and vouchers for the following cash payments.
2.
3.
Maintenance expense
Office supplies
Required
a. Show each of the three events in a horizontal statements model. (In the Statement of Cash Flows
column, indicate whether the item is an operating activity (OA), investing activity (IA), or a 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. Round your final answers to 2 decimal
places.)
Transportation expense
The three distinct accounting events affecting the petty cash fund for the period were (1)
establishment of the fund, (2) reimbursements made to employees, and (3) recognition of
expenses and replenishment of the fund. Assume the company uses the alternative approach to
petty cash expense recognition and replenishment.
Cash
Assets
$ 77.25
79.20
36.25
Balance Sheet
+Petty Cash
+
Liabilities
+
+
FRESH FOODS
Horizontal Statements Model
+
Stockholders'
Equity
Retained
Earnings
Revenue
Income Statement
I
I
Expenses = Net Income
|||||||
=
Statement of Cash
Flows](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe30b56d3-2816-40f0-b495-dd3cb7a745cf%2F0c4ef00e-3eed-4b39-b91b-c9b762bf5ee9%2Fz3eek8s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:No.
1.
Required information
[The following information applies to the questions displayed below.]
Fresh Foods established a petty cash fund of $275 on January 2. On January 31, the fund
contained cash of $77.50 and vouchers for the following cash payments.
2.
3.
Maintenance expense
Office supplies
Required
a. Show each of the three events in a horizontal statements model. (In the Statement of Cash Flows
column, indicate whether the item is an operating activity (OA), investing activity (IA), or a 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. Round your final answers to 2 decimal
places.)
Transportation expense
The three distinct accounting events affecting the petty cash fund for the period were (1)
establishment of the fund, (2) reimbursements made to employees, and (3) recognition of
expenses and replenishment of the fund. Assume the company uses the alternative approach to
petty cash expense recognition and replenishment.
Cash
Assets
$ 77.25
79.20
36.25
Balance Sheet
+Petty Cash
+
Liabilities
+
+
FRESH FOODS
Horizontal Statements Model
+
Stockholders'
Equity
Retained
Earnings
Revenue
Income Statement
I
I
Expenses = Net Income
|||||||
=
Statement of Cash
Flows
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