Jan 1: Established a perry cash fund of $500 Jan 15: The cash sales for the day
ID: 2522325 • Letter: J
Question
Jan 1: Established a perry cash fund of $500
Jan 15: The cash sales for the day per the register were $3018. The actual cash received from cash sales were $3011.
Jan 31: Petty cash on hand was $123. Replenished the petty cash fund for the following disbursements: Jan2: office supplies;$45 Jan10: postage due on letter, $29(miscellaneous expense) Jan14: office supplies; $56 Jan17: Postage stamps; $42(office supplies) Jan 20: Express charges on merchandise sold, $136 (delivery expense) Jan 22: Repair to desk, $63(miscellaneous expense) Jan 30: office supplies, $12 —————————————
Jan 31: The cash sales for the day per the register tape were $2812. The actual cash received from cash sales were $2822
Jan 31: Decreased the petty cash fund by $100.
What is the balance in the cash short/over account (DR or CR and cash amount)? Is it a revenue or an expense?
Thank you very much The actual cash received from cash sales were $2,822 31 Decreased the pety cash fund by $100 General Journal Date Description Debit Credit 2 Prtsc Insert 5 6 7 8 9 0 O P
Explanation / Answer
Jenrob Company
Journal Entries –
Date
Description
Debit
Credit
1-Jan
Petty Cash
$500
Cash
$500
(Established petty cash)
15-Jan
Cash
$3,011
Cash Short /Over
$7
Sales
$3,018
(To record actual cash received on cash sales)
31-Jan
Office Supplies
$155
($45 + $56 + $42 + $12)
Miscellaneous Expense
$92
($29 + $63)
Delivery Expense
$136
Cash Short /Over
$7
Cash
$377
($500 - $123 = $377; $383-$377 = $7)
(To record disbursements and cash short)
31-Jan
Cash
$100
Petty Cash
$100
(To record decrease of Petty Cash by $100)
31-Jan
Cash
$2,822
Cash Short /Over
$10
Sales
$2,812
(To record sales and actual cash received)
Determination of the balance in the cash short/overaccount (DR or CR and cash amount):
Cash short over Debit balance on Jan 15 = $7
Cash short/over Credit Balance on Jan 31 = $7
Cash short/over credit balance on Jan 31 = $10
= $7 -$7 +$10 = $10
Hence, Balance in Cash Short/Over = Credit balance of $10
It is a Revenue.
Date
Description
Debit
Credit
1-Jan
Petty Cash
$500
Cash
$500
(Established petty cash)
15-Jan
Cash
$3,011
Cash Short /Over
$7
Sales
$3,018
(To record actual cash received on cash sales)
31-Jan
Office Supplies
$155
($45 + $56 + $42 + $12)
Miscellaneous Expense
$92
($29 + $63)
Delivery Expense
$136
Cash Short /Over
$7
Cash
$377
($500 - $123 = $377; $383-$377 = $7)
(To record disbursements and cash short)
31-Jan
Cash
$100
Petty Cash
$100
(To record decrease of Petty Cash by $100)
31-Jan
Cash
$2,822
Cash Short /Over
$10
Sales
$2,812
(To record sales and actual cash received)
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