Which of the Following Journal Entries Would Be Recorded If $$\begin{array} { | l | r | r | } \hline \text { Tane Brown, capital } & 6000 & \\\hline \text { Cash } & & 6000 \\\hline\end{array}$$

question 25

Multiple Choice

Which of the following journal entries would be recorded if Jane Brown started a business and then deposited cash of $6 000 into the business bank account?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Tane Brown, capital } & 6000 & \\
• \hline \text { Cash } & & 6000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Tane Brown, capital } & 6000 & \\
• \hline \text { Accounts payable } & & 6000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts payable } & 6000 & \\
• \hline \text { Cash } & & 6000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 6000 & \\
• \hline \text { Jane Brown, capital } & & 6000 \\
• \hline
• \end{array}\]

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Definitions:

Futures Contract

A formalized agreement that obligates the purchase or sale of a specific commodity or asset at an agreed-upon price at a future date.

Forward Contract

A non-standardized agreement to buy or sell an asset at a future date for a price agreed upon today.

Daily Resettlement

The process in futures trading where the gains or losses of the day are calculated, and accounts are adjusted accordingly to reflect the market value.

Forward Contract

A bespoke contract that allows two parties to trade an asset at a fixed price on a designated date in the future.