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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

CASH SHORT AND OVER ENTRIES Listed below are the weekly cash register tape amounts for service fees and the related cash counts during the month of July. A change fund of $200 is maintained.

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Required

  1. 1. Prepare the journal entries to record the cash service fees and cash short and over for each of the five weeks.
  2. 2. Post to the cash short and over account (use Account No. 516).
  3. 3. Determine the ending balance of the cash short and over account. Does it represent an expense or revenue?

1.

To determine

Prepare journal entry to record the cash service fees, cash short and over.

Explanation

Prepare journal entry to record the cash service fees, cash short and over.

DateAccount Titles and explanationDebit ($)Credit ($)
August  1Cash  ($495.00$200)295.00 
     Cash short and over ($295.00$292.50) 3.50
      Service fees 292.00
 (To record service fees and cash overage)  
    
August  8Cash  ($501.50$200)301.50 
 Cash short and over ($305.00$301.50)3.50 
      Service fees 305.00
 (To record service fees and cash shortage)  
    
August  15Cash ($486.00$200)286.00 
      Service fees 286.00
 (To record service fees)  
    
August  22Cash ($532

2.

To determine

Post the transactions to the general ledger.

3.

To determine

Ascertain the ending balance of the cash short and over account and also specify whether cash short and over accounts reports an expense or revenue.

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