Question

Jackson Brothers decided to create a petty cash fund. They estimated that $200 would be needed in the fund. Demonstrate the correct journal entry to create the account by choosing the correct action from those below. Multiple choice question. Cash is debited for $200; Petty Cash is credited for $200. Petty Cash is credited for $200; Miscellaneous Expense is debited for $200. Petty Cash is debited for $200; Cash is credited for $200. Miscellaneous Expense is debited for $200; Cash is credited for $200.

Answer 1

Answer:

Petty Cash is debited for $200; Cash is credited for $200

Explanation:

Based on the information given in a situation were they decided to create a petty cash fund in which it was estimated that the amount of $200 would be needed in the petty cash fund which means that the correct journal entry to create the account is to DEBIT Petty Cash with the amount of $200 and to CREDIT Cash with the amount of $200.

Petty Cash is debited for $200

Cash is credited for $200