Question

while examining cash receipts information, the accounting department determined the following information: opening cash balance $150.00, 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. if no entry is required, select
o entry\ for the account titles and enter 0 for the amount in the relevant debit or credit box. entering zero in all boxes will result in the question being marked incorrect. list all debit entries before credit entries.)

Explanation:

Step1: Calculate cash over - short

The formula for cash over - short is \(Cash\ on\ hand - (Opening\ cash\ balance+Cash\ sales)\)

$$
LATEXBLOCK0
$$

Step2: Record the journal entry

Debit \(Cash\) for the amount of cash on hand (\(1125.74\)), debit \(Cash\ Over - Short\) for the negative difference (\(12.88\)), and credit \(Sales\) for the cash sales amount (\(988.62\)) and credit \(Opening\ Cash\) for the opening cash balance (\(150\))

Answer:

Account Titles and Explanation	Debit	Credit
Cash Over - Short	\(12.88\)
Sales		\(988.62\)
Opening Cash		\(150.00\)