Use the following to answer questions 10-12:Indicate how each event affects the elements of the financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Enter only one letter for each element.Increase = I Decrease = D No Effect = NAAt Landau Company, the petty cash custodian used petty cash to pay for postage charges.AssetsLiabilitiesStk. EquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(NA) (NA) (NA) (NA) (NA) (NA) (NA)
No journal entry is made in the accounting records when petty cash funds are disbursed. The effects on the financial statements are recorded only when the petty cash fund is replenished or increased (when additional currency is put into the petty cash safety box).
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