Question: 2. (a) Why do we worry about deposits in transit and outstanding checks? (b) Wont they work themselves out the following month? 3. (a) What

2. (a) Why do we worry about deposits in transit and outstanding checks? (b) Wont they work themselves out the following month?

3. (a) What is the normal balance of the cash short and over account? (b) Why is this account treated as an expense or revenue account on the income statement rather than an asset account on the balance sheet? After all, isnt it a cash account?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

2. (a) Why do we worry about deposits in transit and outstanding checks? (b) Wont they work themselves out the following month? 3. (a) What is the normal balance of the cash short and over account?...

Can someone please help?!?!?! I don't get accounting :( University of Maryland University College Final Examination Acct220: Principles of Accounting I For this exam, omit all general journal entry...

1. Deposits in transit have: A. been recorded by the company but not yet by the bank. B. been recorded by the bank but not yet by the company. C. not been recorded by the bank or the company. D. been...

can you help me create ab adjusted trial balance, income statement, statement of retained earnings and balance sheet please? transactions: templates: journal entries: adjusted journal entries t...

Bank Reconciliation The following information is available to assist you in preparing a bank reconciliation for Karen's Catering on March 31: a. The balance on the March 31 bank statement is...

Why do we worry about deposits in transit and outstanding checks? Won't they "work themselves out" the following month? Tips: -Define Internal control - Define Bank reconciliation - How do we prepare...

I am need help! I am not understanding how to prepare this general journal entries, adjusting entries, adjusted trial balance, balance sheet, and the closing entries. Please see attachments Name:...

ANSWER ANY 2 PLEASE. Q: Why do we spend so much time on internal control for cash receipts and disbursements? Shouldnt we be just as concerned over other assets? Expenses? Revenue? Liabilities? Q: A...

If you can help me with any of these questions, that will be helpful. Thank you!! Name: .15 Question 1: Suggested time 45 minutes: 40% points a. General Journal Entries: Date Account Debit Credit b....

Using Laplace Tranaform method, the solution of the following differential equation is y+2y"+y=e y(0)-0, y'(0) =1, y"(0) -0 y) - Agt+ A,o'+ Ae where A, are constants. y0 - Ag+A,e'+Aye+A,le where A,...

Indicate whether the firm should add or subtract each item below from its balance of cash or the banks balance of cash in preparing a bank reconciliation. The first answer is provided as an example....

A jewelry store is concerned that the price of gold might rise in value prior to taking delivery of the metal. What is the most appropriate strategy, given the store's objective? Sell short a gold...

Central Manufacturing, Inc. is preparing budgets for the second quarter of 2016. Central produces only one product in its factory. This product requires 4 pounds of material C, 3 pounds of material...