Question

Royal Jewels, a retail business, started business on June 25, 2019. It keeps a $300 change fund in its cash register. The cash receipts for the period from June 25 to June 30, 2019 are below.

DATE		TRANSACTIONS
June	25	Cash sales per the cash register tape, $1,237.
		Cash count, $1,527.
	26	Cash sales per the cash register tape, $1,347.
		Cash count, $1,638.
	27	Cash sales per the cash register tape, $1,355.
		Cash count, $1,659.
	28	Cash sales per the cash register tape, $1,289.
		Cash count, $1,580.
	29	Cash sales per the cash register tape, $1,136.
		Cash count, $1,437.
	30	Cash sales per the cash register tape, $1,375.
		Cash count, $1,666.

Required:

2. Record the cash receipts from June 25 to June 30, 2019, in a general journal.
3. Post the amounts for Cash Short or Over in the journal entries to the general ledger.

Analyze:
How will the balance in Cash Short or Over on June 30 be reported in the financial statements?

Answer 1

A)The cash receipts from June 25 to June 30, 2019, in a general journal is as follows:

Date	Account and Explanation	Debit ($)	Credit($)
June 25	Cash	1,227
	Cash short or over ($300 + $1,237 - $1,527)	10
	Sale Revenue		1,237
	(Recorded the cash receipt )
June 26	Cash	1,338
	Cash short or over($300 + $1,347 - $1,638)	9
	Sale Revenue		1,347
	(Recorded the cash receipt )
June 27	Cash	1,359
	Cash short or over ($300 + $1,355 - $1,659)		4
	Sale Revenue		1,355
	(Recorded the cash receipt )
June 28	Cash	1,280
	Cash short or over ($300 + $1,289 - $1,580)	9
	Sale Revenue		1,289
	(Recorded the cash receipt )
June 29	Cash	1,137
	Cash short or over ($300 + $1,136 - $1,437)		1
	Sale Revenue		1,136
	(Recorded the cash receipt )
June 30	Cash	1,366
	Cash short or over ($300 + $1,375 - $1,666 )	9
	Sale Revenue		1,375
	(Recorded the cash receipt )

B)The amounts for Cash Short or Over in the journal entries to the general ledger is as follows:

Date	Debit	Credit	Closing Balance
June 25	10		10
June 26	9		19
June 27		4	15
June 28	9		24
June 29		1	23
June 30	9		$ 32

C) The amount of Cash Short or Over shown as an expenses in the income statement of the company.