Question

While examining cash receipts information, the accounting department determined the following information: opening cash balance $180, cash on hand $1,350.89, and cash sales per register tape $1,186.34. Prepare the required journal entry based upon the cash count sheet.

Answer 1

Answer:

Cash $1,170.89

Cash Over/Short $15.45

     To Sales Revenue  $1,186.34

(Beingthe cash is recorded)

Explanation:

Before passing the journal entry first we have to determine the ending cash balance which is shown below:

Ending Cash Balance is

= Opening Cash Balance + Sales

= $180 + $1,186.34

= $1,366.34

Short cash is

= Ending cash balance - cash on hand

= $1,366.34 - $1,350.89

= $15.45

And, the actual cash is

= Cash on hand - opening cash balance

= $1,350.89 - $180

= $1,170.89

Now the journal entry is

Cash $1,170.89

Cash Over/Short $15.45

     To Sales Revenue  $1,186.34

(Being the cash is recorded)