When cash is short it is a debit. 

True 

False

The actual cash received from cash sales was $114,850, and the amount indicated by the cash register total was $114,975. Journalize the entry to record the cash receipts and cash sales.

Cash                         $114,850

Cash Short and Over   $125

      Sales                                    $114,975

Cash     $32,730

   Cash Short and Over     $40

   Sales                           $32,690

Identify each of the following reconciling items as a(n):

a. Addition to the cash balance per comapny's records

b. Addition to the cash balance per the bank statement

c. Deduction from the cash balance per company's records

b. Deduction from the cash balance per bank statement

1. Bank service changes, $30

2. Check of a customer returned by bank to company because of insufficient funds, $1,750

3. Check for $390 incorrectly recorded by the company s $930

4. Check for $50 incorrectly charged by bank as $500

5. Deposit in transit, $9,700

6. Outstanding checks, $33,110

7. Note Collected by bank, $24,600

1. Deduction from the cash balance per company's records

2. Deduction from the cash balance per company's records

3. Addition to the cash balance per comapny's records

4. Addition to the cash balance per the bank statement

5. Addition to the cash balance per the bank statement

6. Deduction from the cash balance per bank statement

7. Addition to the cash balance per comapny's records

Which of the reconciling items listed below require an entry in the company's accounts? (None of the transactions reported by bank debit and credit memos have been recorded by the company)

1. Bank service charges

2. NSF check returned to the comapny by the bank 

3. Check incorrectly recorded by the company

4. Check incorrectly charged by the bank

5. Deposit in transit

6. Outstanding checks

7. Note collected by the bank

1. Yes

2. Yes

3. Yes

4. No

5. No

6. No

7. Yes

Accompanying a bank statement for Borsa Company is a credit memo for $18,200, representing the principle ($17,500) and interest ($700) on a note that had been collected by the bank. 

Journalize the entry that should be made by the company to bring the accounting records up to date. 

Cash       $18,200

   Notes Receivable          $17,500

   Interest Revenue          $700

Journalize the entries to record the following:

a. Check No. 33694 is issud to establish a petty cash fund of $900

b. The amount of cash in the petty cash fund is now $70. Check No. 33749 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $525;  miscellaneous selling expense, $190; miscellaneous administrative expene, $85. (Since the amount of the check to replenish the fund plus the balance in the fund do not equal $900, record the discrepancy in the cash short and over account.

a. 

Petty Cash    $900

     Cash                   $900    

b.

Office Supplies               $525

Misc. Selling Expense      $190

Misc. Admin. Expense     $85

Cash Short and Over      $30

         Cash                                $830

Cosider the Following Data:

Cash and Cash Equivalents             $48,402

Net Cash Flows From Operations     (63,656)

a. Determine the monthly cash expense.

b. Determine the ratio of cash to monthy cash expeses

c. Based on cash at the end of the year the company will run out of cash in about... 

a.$5,304.7

63,656 / 12 = 5,304.7

Monthly Cash Expense = Net Cash Flows From Operations / 12

b. 9.1

48,402/5,304 = 9.1

Ratio of Cash to Monthly Cash Expense = Cash and Cash Equivalents / Monthly Cash Expense

c. 9 months

Why? Because the Ratio of CAsh to Monthly Cash Expense is 9.1, in other words 9 months. 

Journalized the Following Entry:

The petty cash fund was established at $800. Petty cash on had at the end of the month was $275. Total expenses for the month totaled to $501.

Expenses                   $501

Cash Short and Over    $24

              Cash                          $525

Journalize the Following Entry:

The petty cash fund was established at $800. The petty cash fund was decreased by $50 at the end of the month

Cash            $50

   Petty Cash        $50

Journalize the Following Entry:

The cash sales for the day, according to the cash register records, totaled $6,155. The actual cash received from cash sales was $6,125.

Cash                       $6,125                                        

Cash Short and Over  $30           

       Sales                               $6,155