Question

While examining cash receipts information, the accounting department determined the following information: opening cash balance $150, cash on hand $1,125.74, and cash sales per register tape $988.62. Prepare the required journal entry based upon the cash count sheet. (Round answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Step-by-step explanation:

Before passing the journal entry, first, we have to compute the over and short cash balance till date. The computation is shown below:

Ending cash balance = Opening cash balance + cash sales

= $150 + $988.62

= $1,138.62

And, the cash balance is $1,125.74

So, the remaining balance is $12.88 which represent short cash balance

The journal entry is shown below:

Cash A/c Dr $975.74

Short cash A/c Dr $12.88

To Sales A/c $988.62

(Being cash count recorded)

The left balance would be debited to the cash account