5. xyz, inc. established a petty cash fund for $100 on november 1. write the general journal entry to…
5. xyz, inc. established a petty cash fund for $100 on november 1. write the general journal entry to establish petty cash.
Answer
Explanation:
Step1: Identify accounts affected
When establishing a petty - cash fund, the Petty Cash account is debited (increases an asset) and the Cash account is credited (decreases an asset). Debit: Petty Cash; Credit: Cash
Step2: Determine amounts
The petty - cash fund is established for $100. So, the amount debited to Petty Cash and credited from Cash is $100. Debit Petty Cash $100; Credit Cash $100
Answer:
| Date | Account Titles and Explanation | Debit | Credit |
|---|---|---|---|
| Nov. 1 | Petty Cash | 100 | |
| Cash | 100 |