Asked by Andrew Cavender on Jul 11, 2024
Verified
Vanessa's Gymnastics' cash register tapes do not agree with cash receipts. The facts are: total cash register tapes $410; total coins and currency $416. The summary journal entry to record the day's transactions would include a:
A) $410 debit to Cash; $6 debit to Cash Short and Over; and $416 credit to Service Revenue.
B) $416 debit to Cash; $6 credit to Cash Short and Over; and $410 credit to Service Revenue.
C) $416 debit to Cash and $416 credit to Service Revenue.
D) $410 debit to Cash and $410 credit to Service Revenue.
Cash Register Tapes
Physical or electronic records produced by cash registers, detailing each transaction made within a business.
Cash Short
A situation where the recorded amount of cash does not match the actual amount of cash available, often indicating errors or theft.
Cash Over
A situation where the amount of cash on hand is more than what was expected or reported, often requiring investigation.
- Examine the effects of inaccurately documented petty cash transactions on financial reporting.
- Comprehend the principle of a Cash Short and Over account and its effects on accounting practices.
Verified Answer
RL
rahma lintangJul 13, 2024
Final Answer :
B
Explanation :
The correct entry accounts for the actual cash received ($416) and records the discrepancy ($6) as a credit to Cash Short and Over, balancing with the expected revenue ($410).
Learning Objectives
- Examine the effects of inaccurately documented petty cash transactions on financial reporting.
- Comprehend the principle of a Cash Short and Over account and its effects on accounting practices.