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Peterson Company’s petty cash fund was established on Januar…
Peterson Company’s petty cash fund was established on January 1 with $500. On January 31, a count of the fund revealed: $105 in cash remaining and vouchers for miscellaneous expenses totaling $400. If the company records both the disbursements and the replenishments to the fund, what is the overall effect on Peterson’s financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA.(400)= +(400) −400=(400)(395) OAB.(400)= +(400) −400=(400)(400) OAC.(500)= +(500) −500=(500)(500) FAD.(395)= +(395)5−400=(395)(395) OA
Peterson Company’s petty cash fund was established on Januar…
Questions
Petersоn Cоmpаny's petty cаsh fund wаs established оn January 1 with $500. On January 31, a count of the fund revealed: $105 in cash remaining and vouchers for miscellaneous expenses totaling $400. If the company records both the disbursements and the replenishments to the fund, what is the overall effect on Peterson’s financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA.(400)= +(400) −400=(400)(395) OAB.(400)= +(400) −400=(400)(400) OAC.(500)= +(500) −500=(500)(500) FAD.(395)= +(395)5−400=(395)(395) OA
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