Jan 1: Established a perry cash fund of $500 Jan 15: The cash sales for the day

Question

Jan 1: Established a perry cash fund of $500
Jan 15: The cash sales for the day per the register were $3018. The actual cash received from cash sales were $3011.
Jan 31: Petty cash on hand was $123. Replenished the petty cash fund for the following disbursements: Jan2: office supplies;$45 Jan10: postage due on letter, $29(miscellaneous expense) Jan14: office supplies; $56 Jan17: Postage stamps; $42(office supplies) Jan 20: Express charges on merchandise sold, $136 (delivery expense) Jan 22: Repair to desk, $63(miscellaneous expense) Jan 30: office supplies, $12 —————————————
Jan 31: The cash sales for the day per the register tape were $2812. The actual cash received from cash sales were $2822
Jan 31: Decreased the petty cash fund by $100.

What is the balance in the cash short/over account (DR or CR and cash amount)? Is it a revenue or an expense?


Thank you very much The actual cash received from cash sales were $2,822 31 Decreased the pety cash fund by $100 General Journal Date Description Debit Credit 2 Prtsc Insert 5 6 7 8 9 0 O P

Explanation / Answer

Jenrob Company

Journal Entries –

Date

Description

Debit

Credit

1-Jan

Petty Cash

$500

Cash

$500

(Established petty cash)

15-Jan

Cash

$3,011

Cash Short /Over

$7

Sales

$3,018

(To record actual cash received on cash sales)

31-Jan

Office Supplies

$155

($45 + $56 + $42 + $12)

Miscellaneous Expense

$92

($29 + $63)

Delivery Expense

$136

Cash Short /Over

$7

Cash

$377

($500 - $123 = $377; $383-$377 = $7)

(To record disbursements and cash short)

31-Jan

Cash

$100

Petty Cash

$100

(To record decrease of Petty Cash by $100)

31-Jan

Cash

$2,822

Cash Short /Over

$10

Sales

$2,812

(To record sales and actual cash received)

Determination of the balance in the cash short/overaccount (DR or CR and cash amount):

Cash short over Debit balance on Jan 15 = $7

Cash short/over Credit Balance on Jan 31 = $7

Cash short/over credit balance on Jan 31 = $10

= $7 -$7 +$10 = $10

Hence, Balance in Cash Short/Over = Credit balance of $10

It is a Revenue.

Date

Description

Debit

Credit

1-Jan

Petty Cash

$500

Cash

$500

(Established petty cash)

15-Jan

Cash

$3,011

Cash Short /Over

$7

Sales

$3,018

(To record actual cash received on cash sales)

31-Jan

Office Supplies

$155

($45 + $56 + $42 + $12)

Miscellaneous Expense

$92

($29 + $63)

Delivery Expense

$136

Cash Short /Over

$7

Cash

$377

($500 - $123 = $377; $383-$377 = $7)

(To record disbursements and cash short)

31-Jan

Cash

$100

Petty Cash

$100

(To record decrease of Petty Cash by $100)

31-Jan

Cash

$2,822

Cash Short /Over

$10

Sales

$2,812

(To record sales and actual cash received)

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