Question

In: Accounting

Royal Jewels, a retail business, started business on June 25, 2019. It keeps a $300 change...

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, $1,231. Cash count, $1,523. 26 Cash sales per the cash register tape, $1,341. Cash count, $1,634. 27 Cash sales per the cash register tape, $1,352. Cash count, $1,655. 28 Cash sales per the cash register tape, $1,283. Cash count, $1,576. 29 Cash sales per the cash register tape, $1,128. Cash count, $1,433. 30 Cash sales per the cash register tape, $1,369. Cash count, $1,662. Required: Record the cash receipts from June 25 to June 30, 2019, in a general journal. 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?

Solutions

Expert Solution

Solution:

1. Record the cash receipts from June 25 to June 30, 2019, in a general journal.

Date Account titles and explaination Debit($) Credit($) Calculations
June 25 Cash A/c Dr $1,223
Cash short or over A/c Dr $8 ($300 + $1,231 - $1,523)
To sales revenue A/c $1,231
June 26 Cash A/c Dr $1,334
Cash short or over A/c Dr $7 ($300 + $1,341 - $1,634)
To sales revenue A/c $1,341
June 27 Cash A/c Dr $1,355
To Cash short or over A/c $3 ($300 + $1,352 - $1,655)
To sales revenue A/c $1,352
June 28 Cash A/c Dr $1,276
Cash short or over A/c Dr $7 ($300 + $1,283 - $1,576)
To sales revenue A/c $1,283
June 29 Cash A/c Dr $1,133
To Cash short or over A/c $5 ($300 + $1,128 - $1,433)
To sales revenue A/c $1,128
June 30 Cash A/c Dr $1,362
Cash short or over A/c Dr $7 ($300 + $1,369 - $1,662)
To sales revenue A/c $1,369

.

2. Post the amounts for Cash Short or Over in the journal entries to the general ledger.

Date Debit($) Date Credit($)
June 25 $8 June 27 $3
June 26 $7 June 29 $5
June 28 $7
June 30 $7
June 30 Balance $21 ($29 - $8)

Analysis:

The cash short or over account has a debit balance of $21 on june 30 which will be reported as an expense in the income statement of Royal Jewels.


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