The accountant for Ye Olde Bookstore balanced out the cash register for the day. The company began the day with $125 and ended the day with $1,150.25 in the cash drawer. That day's cash register tape shows $1,031.50 in cash sales. What is the effect on the financial statements of recording the day's sales and any related overage or shortage?
A)Option A
B)Option B
C)Option C
D)Option D

Question

The accountant for Ye Olde Bookstore balanced out the cash register for the day. The company began the day with $125 and ended the day with $1,150.25 in the cash drawer. That day's cash register tape shows $1,031.50 in cash sales. What is the effect on the financial statements of recording the day's sales and any related overage or shortage? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Recording the day's sales and any related overage or shortage will increase the revenue and cash balance on the financial statements. In this case, the cash sales of $1,031.50 will increase the revenue, and the overage of $25.75 ($1,150.25 - $1,125) will increase the cash balance. Therefore, option C is the correct choice.

The Accountant for Ye Olde Bookstore Balanced Out the Cash