Question

Instructions During March, Anderson Company engaged in the following transactions involving its petty cash fund: March Transactions: Mar. 1 4 Anderson Company established the petty cash fund by issuing a check for $1,800 to the fund custodian. The custodian paid $100 out of petty cash for freight charges on new equipment. This amount is properly classified as equipment The custodian paid $190 out of petty cash for supplies. Anderson expenses supplies purchases as supplies expense. The custodian paid $30 out of petty cash for express mail services for reports sent to the Environmental Protection Agency. This is considered a miscellaneous expense. The custodian filed a claim for reimbursement of petty cash expenditures during the month totaling $320. Anderson issued a check for $320 to the custodian, replenishing the fund for expenditures during the month. 25 31 Required: Prepare any Journal entries required to record the petty cash account transactions that occurred during the month of March

Answer 1

Solution Comt- & particulars Debit Credit Date Mar 1 1800 Mary 100 Mar 12 190 Petty cash ale or 1800 To Bank Ale a (Being amt given to petty Cashier) Equipment tle or 100 To petty cash Ale ce (Being dew Equipment purchased) supplier Alc or 190 To petty cash the (Being art paid to Suppliers) Misc. Expenses Alcor 30 To petty cash Ale er (Being aut pand to Enriron- ment protection) petty cash ale or 320 To Rembursement of cash (Being filed for Rembursement) Rembotpetty cash tle or 320 TO Bank ale a CBeing Reembursement done) Mar 22 Mar 25 320 Mar 31 320