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.A. Miscellaneous Expense is debited for $200; Cash is credited for $200.B. Cash is debited for $200; Petty Cash is credited for $200C. Petty cash is debited for $200; Cash is credited for $200D. Petty cash is credited for $200; Miscellaneous Expense is debited for $200

Answer 1

C.

Step-by-step explanation:

Petty Cash Dr.$200

Cash Cr.$200

As the petty cash is increasing and the corresponding effect will decrease company's cash.Therefore option C is correct.