Question

Spencer Co. decides to establish a petty cash fund with a beginning balance of $200. The company decides that any purchase under $25 can be processed through petty cash instead of the voucher system. The journal entry to record establishing the account is?

Answer 1

journal entry are as given below

Step-by-step explanation:

given data

beginning balance = $200

purchase = $25

to find out

journal entry to record establishing the account is

solution

journal entry are as

Account Debit Credit

Petty cash $200

Cash $200