Question

Western Gift Shop, a retail business, started business on April 25, 2016. It keeps a $22 Change fund in its cash register. The cash receipts for the period from April 25 to April 30, 2016, are below:

INSTRUCTIONS
1. Open the general ledger account for Cash Short or Over, account number 620.
2. Record the cash receipts from April 25 to April 30, 2016, in a general journal. Start the general journal with page 1.
3. Post the amounts for cash short or over in the journal entries to the general ledger.

DATE TRANSACTIONS
April 25 Cash sales per the cash register tape, $1,300.
Cash count, $1,524.
26 Cash sales per the cash register tape, $1,050.
Cash count, $1,276.
27 Cash sales per the cash register tape, $1,230.
Cash count, $1,452.
28 Cash sales per the cash register tape, $1,182.
Cash count, $1,411.
29 Cash sales per the cash register tape, $1,082.
Cash count, $1,308.
30 Cash sales per the cash register tape, $1,217.
Cash count, $1,444.

Analyze:
How will the balance in Cash Short or Over on April 30 be reported in the financial statements?



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  • CreatedAugust 08, 2014
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