Royal Jewels, a retail business, started business on June 25, 2019. It keeps a $
ID: 2550243 • Letter: R
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, $1,327.
Cash count, $1,621.
26
Cash sales per the cash register tape, $1,390.
Cash count, $1,682.
27
Cash sales per the cash register tape, $1,358.
Cash count, $1,663.
28
Cash sales per the cash register tape, $1,282.
Cash count, $1,574.
29
Cash sales per the cash register tape, $1,129.
Cash count, $1,431.
30
Cash sales per the cash register tape, $1,569.
Cash count, $1,860.
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
TRANSACTIONS
June
25
Cash sales per the cash register tape, $1,327.
Cash count, $1,621.
26
Cash sales per the cash register tape, $1,390.
Cash count, $1,682.
27
Cash sales per the cash register tape, $1,358.
Cash count, $1,663.
28
Cash sales per the cash register tape, $1,282.
Cash count, $1,574.
29
Cash sales per the cash register tape, $1,129.
Cash count, $1,431.
30
Cash sales per the cash register tape, $1,569.
Cash count, $1,860.
Explanation / Answer
NAME : ROYAL JEWELS GENERAL JOURNALS FOR THE CASH SALAES FROM 25 JUNE 2019 TO 30 JUNE 2019 DATE PARTICULARS DR CR 25-Jun-19 CASH A/C DR $300 TO CAPITAL A/C $300 25-Jun-19 CASH A/C DR $1,327 TO SALES A/C $1,327 26-Jun-19 CASH A/C DR $1,390 TO SALES A/C $1,390 27-Jun-19 CASH A/C DR $1,358 TO SALES A/C $1,358 28-Jun-19 CASH A/C DR $1,282 TO SALES A/C $1,282 29-Jun-19 CASH A/C DR $1,129 TO SALES A/C $1,129 30-Jun-19 CASH A/C DR $1,569 TO SALES A/C $1,569 NOTE : CASH COUNT = OPENING CASH FUND+ CASH SALES ON THE PARICULAR DATE HENCE ANY DIFFERENCE IN CASH COUNT IS TRETAD AS CASH SHORTAGE OR OVER CASH SHORTAGE = CASH COUNT-CASH SALES -OPENING FUND GENERAL JOURNALS FOR THE CASH SHORTAGE OR OVER FROM 25 JUNE 2019 TO 30 JUNE 2019 DATE PARTICULARS DR CR 25-Jun-19 CASH A/C DR $6 TO CASH SHORTAGE OR OVER A/C $6 26-Jun-19 CASH A/C DR $8 TO CASH SHORTAGE OR OVER A/C $8 27-Jun-19 CASH SHORTAGE OR OVER A/C DR $5 TO CASH A/C $5 28-Jun-19 CASH A/C DR $8 TO CASH SHORTAGE OR OVER A/C $8 29-Jun-19 CASH SHORTAGE OR OVER A/C DR $2 TO CASH A/C $2 30-Jun-19 CASH A/C DR $9 TO CASH SHORTAGE OR OVER A/C $9 AS ON 30 JUNE 2019 CASH SHORTAGE OR OVER SHOWN IN FINANCIAL STATEMENTS UNDER INCOME STATEMENT 30-Jun-19 CASH SHORTAGE OR OVER A/C DR $24 TO INCOME STATEMENT $24 NOTE : THE AMOUNT OF $24 IS CASH SHORTAGE IS TRANSEFERED TO CASH A/C
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.