Reference no: EM13849578
Recording Petty Cash Account Transactions
During March, Anderson Company engaged in the following transactions involving its petty cash fund:
-On March 1, Anderson Company established the petty cash fund by issuing a check for $1,500 to the fund custodian.
-On March 4, the custodian paid $70 out of petty cash for freight charges on new equipment. This amount is properly classified as equipment.
-On March 12, the custodian paid $140 out of petty cash for office supplies. Anderson expenses supplies purchases as supplies expense.
-On March 22, the custodian paid $28 out of petty cash for express mail services for reports sent to the Environmental Protection Agency. This is considered a miscellaneous expense.
-On March 25, the custodian filed a claim for reimbursement of petty cash expenditures during the month totaling $238.
-On March 31, Anderson issued a check for $238 to the custodian, replenishing the fund for expenditures during the month.
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