The accountant for Barb's Bookstore balanced out the cash register for the day. The register indicates $1,031.50 in sales, the change fund at the beginning of the day was $125 and the actual cash in the register is $1,150.25 (including the change fund, previously accounted for). What is the effect on the financial statements of the entry to record the day's sales and any related overage or shortage?

Question

Quizplus · Accepted Answer

$1,150.25 - $125.00 = $1,025.25 increase in cash. Revenue $1,031.50 - $6.25 Cash Short = $1,025.25 increase in net income and equity.

The Accountant for Barb's Bookstore Balanced Out the Cash Register