COLLEGE ACCTG(LL)-W/CONNECT
4th Edition
ISBN: 9781260443547
Author: Haddock
Publisher: MCG CUSTOM
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Chapter 9, Problem 1PB
1.
To determine
Prepare a general ledger account of cash short or over account.
1.
Expert Solution
Explanation of Solution
Ledger Accounts: Ledger accounts can be defined as a T-Account which records and represents the transactions of the business. There are three components involved in the ledger accounts which are account title, credit side and debit side.
The ledger account of cash short or over account:
| Cash Short or Over Account | Account No. 620 | |||||
| Date | Description | Post Ref. | Debit ($) | Credit ($) | Balance | |
| Debit ($) | Credit ($) | |||||
Table (1)
2.
To determine
Prepare a general journal of cash receipts from April 25 to April 30, 2019.
2.
Expert Solution
Explanation of Solution
Receipt of cash on April 25, 2019:
| GENERAL JOURNAL | Page 1 | |||
| Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
| April 25, 2019 | Cash | 1,399 | ||
| Cash short or over | 1 | |||
| Sales Revenue | 1,400 | |||
| (To record the receipt of cash) | ||||
Table (2)
- • Cash is an asset and asset is increased. Hence, the cash account is debited.
- • Cash register tape is more than the bank deposit (that is cash count less change fund), then it is considered as an expense. Hence, the cash short or over is debited.
- • Sales revenue is an income and income is increased. Hence, the sales revenue is credited.
Receipt of cash on April 26, 2019:
| GENERAL JOURNAL | Page 1 | |||
| Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
| April 26, 2019 | Cash | 1,051 | ||
| Cash short or over | 1 | |||
| Sales Revenue | 1,050 | |||
| (To record the receipt of cash) | ||||
Table (3)
- • Since, cash is an asset and asset is increased. Hence, the cash account is debited.
- • Since, cash register tape is less than the bank deposit (that is cash count less change fund), then it is considered as an income. Hence, the cash short or over is credited.
- • Since, sales revenue is an income and income is increased. Hence, the sales revenue is credited.
Receipt of cash on April 27, 2019:
| GENERAL JOURNAL | Page 1 | |||
| Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
| April 27, 2019 | Cash | 1,267 | ||
| Cash short or over | 3 | |||
| Sales Revenue | 1,270 | |||
| (To record the receipt of cash) | ||||
Table (4)
- • Since, cash is an asset and asset is increased. Hence, the cash account is debited.
- • Since, cash register tape is more than the bank deposit (that is cash count less change fund), then it is considered as an expense. Hence, the cash short or over is debited.
- • Since, sales revenue is an income and income is increased. Hence, the sales revenue is credited.
Receipt of cash on April 28, 2019:
| GENERAL JOURNAL | Page 1 | |||
| Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
| April 28, 2019 | Cash | 1,186 | ||
| Cash short or over | 4 | |||
| Sales Revenue | 1,182 | |||
| (To record the receipt of cash) | ||||
Table (5)
- • Since, cash is an asset and asset is increased. Hence, the cash account is debited.
- • Since, cash register tape is less than the bank deposit (that is cash count less change fund), then it is considered as an income. Hence, the cash short or over is credited.
- • Since, sales revenue is an income and income is increased. Hence, the sales revenue is credited.
Receipt of cash on April 29, 2019:
| GENERAL JOURNAL | Page 1 | |||
| Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
| April 29, 2019 | Cash | 1,093 | ||
| Cash short or over | 1 | |||
| Sales Revenue | 1,092 | |||
| (To record the receipt of cash) | ||||
Table (6)
- • Since, cash is an asset and asset is increased. Hence, the cash account is debited.
- • Since, cash register tape is less than the bank deposit (that is cash count less change fund), then it is considered as an income. Hence, the cash short or over is credited.
- • Since, sales revenue is an income and income is increased. Hence, the sales revenue is credited.
Receipt of cash on April 30, 2019:
| GENERAL JOURNAL | Page 1 | |||
| Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
| April 30, 2019 | Cash | 1,220 | ||
| Cash short or over | 3 | |||
| Sales Revenue | 1,217 | |||
| (To record the receipt of cash) | ||||
Table (7)
- • Since, cash is an asset and asset is increased. Hence, the cash account is debited.
- • Since, cash register tape is less than the bank deposit (that is cash count less change fund), then it is considered as an income. Hence, the cash short or over is credited.
- • Since, sales revenue is an income and income is increased. Hence, the sales revenue is credited.
Working Note:
Calculate cash short or over:
Hence, the amount of cash short or over is $1.
Calculate cash:
Hence, the amount of cash is $1,399.
Calculate cash short or over:
Hence, the amount of cash short or over is $1.
Calculate cash:
Hence, the amount of cash is $1,051.
Calculate cash short or over:
Hence, the amount of cash short or over is $3.
Calculate cash:
Hence, the amount of cash is $1,267.
Calculate cash short or over:
Hence, the amount of cash short or over is $4.
Calculate cash:
Hence, the amount of cash is $1,186.
Calculate cash short or over:
Hence, the amount of cash short or over is $1.
Calculate cash:
Hence, the amount of cash is $1,093.
Calculate cash short or over:
Hence, the amount of cash short or over is $3.
Calculate cash:
Hence, the amount of cash is $1,220.
3.
To determine
Post the amounts of cash short or over in the general journal.
3.
Expert Solution
Explanation of Solution
The ledger account of cash short or over account:
| Cash Short or Over Account | Account No. 620 | |||||
| Date | Description | Post Ref. | Debit ($) | Credit ($) | Balance | |
| Debit ($) | Credit ($) | |||||
| April 25. 2019 | Cash | J1 | 1 | 1 | ||
| April 26. 2019 | Cash | J2 | 1 | 0 | ||
| April 27. 2019 | Cash | J3 | 3 | 3 | ||
| April 28. 2019 | Cash | J4 | 4 | 1 | ||
| April 29. 2019 | Cash | J5 | 1 | 2 | ||
| April 30. 2019 | Cash | J6 | 3 | 5 | ||
Table (8)
The ending balance of the cash short or over account is $5. The credit balance of cash short or over account will be recorded under the income statement as a gain to the company.
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Chapter 9 Solutions
COLLEGE ACCTG(LL)-W/CONNECT
Ch. 9 - Prob. 1.1SRQCh. 9 - What is a promissory note? In what situation would...Ch. 9 - How would the receipt of a 62 refund for supplies...Ch. 9 - Prob. 1.4SRECh. 9 - Prob. 1.5SRECh. 9 - Prob. 1.6SRACh. 9 - Prob. 2.1SRQCh. 9 - Prob. 2.2SRQCh. 9 - Prob. 2.3SRQCh. 9 - Prob. 2.4SRE
Ch. 9 - Prob. 2.5SRECh. 9 - Prob. 2.6SRACh. 9 - Prob. 3.1SRQCh. 9 - Prob. 3.2SRQCh. 9 - Prob. 3.3SRQCh. 9 - Prob. 3.4SRECh. 9 - Prob. 3.5SRECh. 9 - Prob. 3.6SRACh. 9 - Prob. 1CSRCh. 9 - Prob. 2CSRCh. 9 - Prob. 3CSRCh. 9 - Prob. 4CSRCh. 9 - Prob. 5CSRCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQCh. 9 - Prob. 11DQCh. 9 - Prob. 12DQCh. 9 - Prob. 13DQCh. 9 - Prob. 14DQCh. 9 - Prob. 15DQCh. 9 - Prob. 16DQCh. 9 - Prob. 17DQCh. 9 - Prob. 18DQCh. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Journalizing cash receipts, cash short or over,...Ch. 9 - Prob. 2PACh. 9 - Prob. 3PACh. 9 - Prob. 4PACh. 9 - Prob. 5PACh. 9 - Prob. 6PACh. 9 - Prob. 1PBCh. 9 - Prob. 2PBCh. 9 - Prob. 3PBCh. 9 - Prob. 4PBCh. 9 - Prob. 5PBCh. 9 - Prob. 6PBCh. 9 - Prob. 1CTPCh. 9 - Prob. 2CTPCh. 9 - Prob. 1MFCh. 9 - Prob. 2MFCh. 9 - Prob. 3MFCh. 9 - Prob. 4MFCh. 9 - Prob. 5MFCh. 9 - Prob. 6MFCh. 9 - Prob. 7MFCh. 9 - Prob. 8MFCh. 9 - Borrowing from Petty Cash Daniel Brown is in...Ch. 9 - Prob. 1FSA
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