Question

he cash register tape for Larkspur Industries reported sales of $7,146.30. Record the journal entry that would be necessary for each of the following situations. (a) Sales per cash register tape exceeds cash on hand by $52.78. (b) Cash on hand exceeds cash reported by cash register tape by $29.45.

Answer 1

Solution:

(a) Cash to be accounted for exceeds cash on hand by $52.78.  

Cash to be accounted for is $7,146.30 .

That means cash on hand is short by $52.78.

Dr Cash                              $7,487.51

Dr Cash over and short       $57.71

Cr Sales                             $7,545.22

(b) Cash on hand exceeds cash to be accounted for by $29.45.

That means you have a cash overage of $29.45

Dr Cash               $7,590.10

Cr Sales                 $7,545.22

Cr Cash over and short $29.45