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, $1,228. |
Cash count, $1,519. | ||
26 | Cash sales per the cash register tape, $1,336. | |
Cash count, $1,630. | ||
27 | Cash sales per the cash register tape, $1,349. | |
Cash count, $1,651. | ||
28 | Cash sales per the cash register tape, $1,278. | |
Cash count, $1,572. | ||
29 | Cash sales per the cash register tape, $1,125. | |
Cash count, $1,429. | ||
30 | Cash sales per the cash register tape, $1,364. | |
Cash count, $1,658. |
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?
Date | General Journal | Debit | Credit |
25-Jun-19 | Cash | $1,219.00 | |
Cash short or over (300 + 1228 - 1519) | $9.00 | ||
Sales revenue | $1,228.00 | ||
26-Jun-19 | Cash | $1,330.00 | |
Cash short or over (300 + 1336 -1630) | $6.00 | ||
Sales revenue | $1,336.00 | ||
27-Jun-19 | Cash | $1,351.00 | |
Cash short or over (300 + 1349 -1651) | $2.00 | ||
Sales revenue | $1,349.00 | ||
28-Jun-19 | Cash | $1,272.00 | |
Cash short or over (300 + 1278 -1572) | $6.00 | ||
Sales revenue | $1,278.00 | ||
29-Jun-19 | Cash | $1,129.00 | |
Cash short or over (300 + 1125 -1429) | $4.00 | ||
Sales revenue | $1,125.00 | ||
30-Jun-19 | Cash | $1,358.00 | |
Cash short or over (300 + 1364-1658) | $6.00 | ||
Sales revenue | $1,364.00 | ||
(To record daily cash sales) | |||
Cash Short or Over | |||
Jun-25 | $9.00 | Jun-27 | $2.00 |
Jun-26 | $6.00 | Jun-29 | $4.00 |
Jun-28 | $6.00 | ||
Jun-30 | $6.00 | ||
Jun-30 bal. | $21.00 |
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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