multiple choice question xyz co. decided to create a petty cash fund. they estimated that $100 would be…

multiple choice question xyz co. decided to create a petty cash fund. they estimated that $100 would be needed in the fund. demonstrate the correct journal entry to create the account by choosing the correct action from those below. cash is debited for $100. petty cash is credited for $100. miscellaneous expense is debited for $100. petty cash is debited for $100.

multiple choice question xyz co. decided to create a petty cash fund. they estimated that $100 would be needed in the fund. demonstrate the correct journal entry to create the account by choosing the correct action from those below. cash is debited for $100. petty cash is credited for $100. miscellaneous expense is debited for $100. petty cash is debited for $100.

Answer

Explanation:

Step1: Understand petty - cash fund creation

When creating a petty - cash fund, the petty - cash account is debited to increase its balance, and cash is credited (from the main cash account) to transfer the funds to the petty - cash fund.

Step2: Analyze the options

The correct entry to create a petty - cash fund of $100 is to debit the Petty Cash account for $100.

Answer:

Petty Cash is debited for $100.