Question 1

Vanessa's Gymnastics' cash register tapes do not agree with cash receipts. The facts are: total cash register tapes $300; total coins and currency $304. The summary journal entry to record the day's transactions would include a

Accepted Answer

The correct entry includes a $304 debit to Cash to reflect the actual amount of coins and currency received, a $4 credit to Cash Short/Over to account for the overage compared to the cash register tapes, and a $300 credit to Sales to record the sales amount per the cash register tapes.

Question 2

If the ending balance in the Cash Short/Over account is a debit, it indicates that cash shortages have exceeded cash overages for the period.

Accepted Answer

A debit balance in the Cash Short/Over account means that there were more cash shortages than overages during the period. This represents an overall loss of cash for the business.

Question 3

Phil's Training Service's $100 petty cash fund has a shortage of $4. The facts are: $80 in valid receipts for expenses; $16 in coins and currency. The journal entry to replenish the petty cash fund would include a

Accepted Answer

The shortage of $4 means that the actual cash and receipts do not add up to the original petty cash amount. To account for this, a debit to Cash Short/Over for $4 is needed to reflect the discrepancy.

Question 4

Determine the cash short (-) or over (+) given the following:
The balance per the Petty Cash account $75.
The count of coin and currency amounts to $22.
There are receipts: for gas of $9, for office supplies of $18, for first aid supplies $14.

Accepted Answer

The answer of Determine the cash short (-) or over...

Question 5

Prepare journal entries for the following petty cash fund transactions:
Sept. 1 Established a $100 petty cash fund.
30 Replenished the petty cash fund. Currency and coins remaining was $28;
approved paid vouchers were: $12 donation expense; $18 postage; $24 office
supplies expense; and $26 miscellaneous expense.

Accepted Answer

The answer of Prepare journal entries for the following petty...

Question 6

Haliburton Hotel's $200 Petty Cash fund has a shortage of $8. The facts are $160 in valid receipts for expenses; $32 in coins and currency. The journal entry to replenish the petty cash fund would include a

Accepted Answer

The correct journal entry to replenish the petty cash fund includes debiting various expenses for $160 (total of valid receipts), debiting Cash Short and Over for $8 (to account for the shortage), and crediting Cash for $168 (the total needed to replenish the fund back to its original $200, accounting for the $32 still in the fund). Option C is correct because it addresses the shortage by debiting Cash Short and Over.

Question 7

Prepare journal entries for the following petty cash fund transactions:
Nov. 1 Established a $50 petty cash fund.
15 Increased the petty cash fund to have a new balance of $100.
30 Replenished the petty cash fund. Currency and coins remaining were $20.
Approved paid vouchers were: $10 donation expense; $16 postage expense;
$30 office supplies expense; and $20 misc. expense.

Accepted Answer

The answer of Prepare journal entries for the following petty...

Question 8

Determine the cash short (-) or over (+) given the following:
The balance per the petty cash account $100.
The count of coin and currency amounts to $23.
There are receipts: for telephone costs of $25, for supplies of $6, for transportation $6, for funeral flowers $38.

Accepted Answer

The answer of Determine the cash short (-) or over...

Question 9

The entry to replenish a $200 petty cash fund, which has cash of $40 and valid receipts for $148, would include

Accepted Answer

The correct entry to replenish a petty cash fund involves crediting the Cash account for the amount needed to bring the petty cash fund back to its original level. In this case, the fund has $40 in cash and receipts for $148, totaling $188. Since the fund should be at $200, you need to add $160 ($200 - $40) to replenish it. Therefore, you credit Cash for $160.

Question 10

Cash Short and Over is

Accepted Answer

Cash Short and Over is a general ledger account used to track small discrepancies in cash transactions. If the balance is positive, it is recorded as a Misc. Revenue account, and if the balance is negative, it is recorded as a Misc. Expense account. Therefore, the correct answer is C, which indicates that it can be either a Misc. Expense or Misc. Revenue account depending on the balance in the account.

Question 11

The petty cash overage was not recorded. This would cause

Accepted Answer

The answer of The petty cash overage was not recorded....

Question 12

Produce the entry to replenish petty cash using the following information:
Cash in box $20
Balance of petty cash account 200
Valid receipts in box
Postage 45
Office Supplies 60
Withdrawals by owner 50
Invoice from courier 20
Cash shortage 5

Accepted Answer

The answer of Produce the entry to replenish petty cash...

Question 13

If there is an overage in the petty cash fund it would be considered other income.

Accepted Answer

An overage in the petty cash fund is considered other income because it represents excess cash that was not accounted for in the initial petty cash allocation, thus increasing the company's income.

Question 14

A company would use a change fund if

Accepted Answer

A change fund is used when a company expects to have cash transactions on a daily basis. It allows the company to have a set amount of cash on hand to make change for customers and complete transactions quickly without needing to constantly withdraw cash from a bank account. The other options, paying postage expenses without writing a check and making personal withdrawals easily, do not require the use of a change fund.

Question 15

Prepare journal entries for the following petty cash fund transactions:
Jul. 1 Established a $75 petty cash fund.
9 Increased the petty cash fund to $100.
31 Replenished the petty cash fund. Currency and coins remaining were $20.
Approved paid vouchers were $12 donation expense, $21 postage expense, $30 office
supplies expense and $15 miscellaneous expense.

Accepted Answer

The answer of Prepare journal entries for the following petty...

Question 16

The change fund is what type of account?

Accepted Answer

The change fund is considered an asset account because it represents cash that a business holds for the purpose of making change for transactions. This cash is readily available and can be used to make change for customers.

Question 17

When a company sets up a change fund account it would be considered a(n)

Accepted Answer

A change fund account represents cash that is kept on hand to make change for customers. This cash is considered an asset of the company, as it has tangible value and can be used to generate revenue for the business.

Question 18

If the ending balance in the Cash Short/Over account is a credit, it indicates that cash shortages have exceeded cash overages for the period.

Accepted Answer

If the ending balance in the Cash Short/Over account is a credit, it indicates that cash overages have exceeded cash shortages for the period.

Question 19

Prepare journal entries for the following petty cash fund transactions:
Aug. 1 Established a $50 petty cash fund.
31 Replenished the petty cash fund. Currency and coins remaining were $8.
Approved paid vouchers were $6 donation expense, $9 postage expense,
$12 office supplies expense, and $13 miscellaneous expense.

Accepted Answer

The answer of Prepare journal entries for the following petty...

Quiz 8: Banking Procedures and Control of Cash

Vanessa's Gymnastics' cash register tapes do not agree with cash receipts. The facts are: total cash register tapes $300; total coins and currency $304. The summary journal entry to record the day's transactions would include a

If the ending balance in the Cash Short/Over account is a debit, it indicates that cash shortages have exceeded cash overages for the period.

Phil's Training Service's $100 petty cash fund has a shortage of $4. The facts are: $80 in valid receipts for expenses; $16 in coins and currency. The journal entry to replenish the petty cash fund would include a

Determine the cash short (-) or over (+) given the following: The balance per the Petty Cash account $75. The count of coin and currency amounts to $22. There are receipts: for gas of $9, for office supplies of $18, for first aid supplies $14.

Haliburton Hotel's $200 Petty Cash fund has a shortage of $8. The facts are $160 in valid receipts for expenses; $32 in coins and currency. The journal entry to replenish the petty cash fund would include a

Determine the cash short (-) or over (+) given the following: The balance per the petty cash account $100. The count of coin and currency amounts to $23. There are receipts: for telephone costs of $25, for supplies of $6, for transportation $6, for funeral flowers $38.

The entry to replenish a $200 petty cash fund, which has cash of $40 and valid receipts for $148, would include

Cash Short and Over is

The petty cash overage was not recorded. This would cause

Produce the entry to replenish petty cash using the following information: Cash in box $20 Balance of petty cash account 200 Valid receipts in box Postage 45 Office Supplies 60 Withdrawals by owner 50 Invoice from courier 20 Cash shortage 5

If there is an overage in the petty cash fund it would be considered other income.

A company would use a change fund if

The change fund is what type of account?

When a company sets up a change fund account it would be considered a(n)

If the ending balance in the Cash Short/Over account is a credit, it indicates that cash shortages have exceeded cash overages for the period.