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, $1,227.
		Cash count, $1,517.
	26	Cash sales per the cash register tape, $1,337.
		Cash count, $1,628.
	27	Cash sales per the cash register tape, $1,345.
		Cash count, $1,649.
	28	Cash sales per the cash register tape, $1,279.
		Cash count, $1,570.
	29	Cash sales per the cash register tape, $1,126.
		Cash count, $1,427.
	30	Cash sales per the cash register tape, $1,365.
		Cash count, $1,656.

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?

Answer 1

Date	Accounts Title	Dr	Cr
25-Jun	Cash (bal fig)	$1,217
	Cash short or over (300+1227-1517)	10
	Sales Revenue		$1,227
26-Jun	Cash (bal fig)	$1,328
	Cash short or over (300+1337-1628)	9
	Sales Revenue		$1,337
27-Jun	Cash (bal fig)	$1,349
	Cash short or over (300+1345-1649)		4
	Sales Revenue		$1,345
28-Jun	Cash (bal fig)	$1,270
	Cash short or over (300+1279-1570)	9
	Sales Revenue		$1,279
29-Jun	Cash (bal fig)	$1,428
	Cash short or over (300+1126-1427)		1
	Sales Revenue		$1,427
30-Jun	Cash (bal fig)	$1,356
	Cash short or over (300+1365-1656)	9
	Sales Revenue		$1,365
ans 2	Cash Short or over	Account No 620
	Date	Dr	Credit	balance
	25-Jun	10		10
	26-Jun	9		19
	27-Jun		4	15
	28-Jun	9		24
	29-Jun		1	23
	30-Jun	9		32
ans 3	as an expense on income statement