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Austin Co Established A Petty Cash Fund by Issuing A
Austin Co Established A Petty Cash Fund by Issuing A
a
Austin Co established a petty cash fund by issuing a
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:
There was $21 of currency in the petty cash box at the time it was replenished.
Required
b. Explain how the Cash Short and Over account required in this case will affect the income
statement.
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).
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.
ANSWER
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