[ The following Information apples to the questions displayed belowj Fresh Foods

Question

[ The following Information apples to the questions displayed belowj Fresh Foods established a petty cash fund of $325 on January 2. On January 31, the fund contained cash of $151.25 and vouchers for the following cash payments: Malntenance expense Office supplies Transportation expense $69.25 73.60 27.50 The three distinct accounting events affecting the petty cash fund for the perlod were (1 establishment of the fund, (2) relmbursements made to employees, and (3) recognition of expenses and replenishment of the fund value 2.85 points Required a. Record each of the three events in 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), ora financing activity (FA). Use NA to indicate that an account was not affected by the event. Enter any decreases to account balances with a minus sign. Round your final answers to 2 decimal laces FRESH FOODS Statements Model Stockholders Assets RevenueExpenseNet Income uI Cash Flow No ash Petty Cash Retained Earnings

Explanation / Answer

Note: The petty cash fund will be replenished to the extent of the vouchers of $69.25 + $73.60 + $27.50 = $170.35 and the short cash of $325 - $151.25 - $170.35 = $3.40. Total replenishment = $170.35 + $3.40 = $173.75.

a. No effect

b. Net charge to expense: $64.97

$75 - $10.03 = $64.97

c. Replenishment

Per Chegg guidelines, please post independent questions separately. Thank you.

FRESH FOODS Statements Model Assets = Stockholders' Equity Revenue - Expense = Net Income Cash Flow No. Cash + Petty Cash = Retained Earnings 1 -325.00 325.00 NA NA NA NA NA 2 NA NA NA NA NA NA NA 3 -173.75 NA -173.75 NA 173.75 -173.75 OA

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