The controller has completed the T accounts for the Cash and Sales accounts as of January 30, but needs to
The controller has completed the T accounts for the Cash and Sales accounts as of January 30, but needs to attend an important conference in another city. She has requested that you prepare the T account for the Cash Short and Over account as of January 30 also. You are told that the balance of the account is zero as of the beginning of January, and that all the company’s sales are in cash.
Review the following T accounts, and then scroll down to complete the Cash Short and Over T account and answer the associated question that follows it.
|Balance 1/1/Y5||5,500||1/2/Y5 Establish Petty Cash||500|
Review the T accounts previously shown, and then complete the Cash Short and Over T account and the following associated question.
|Cash Short and Over|
What will happen to the ending balance in the Cash Short and Over account at the end of the accounting period?
a. The discrepancy must be reported to the Securities and Exchange Commission.
b. It will be a miscellaneous expense on the income statement.
c. It will be added to the Other revenue section of the income statement.
d. The discrepancy must be reported on the company website.