After asking the intern to search for other errors by comparing her reconciliation to prior bank reconciliations prepared by the former accountant, you work together to calculate the corrected Adjusted Balance. Enter your answer with two decimal places. Corrected Adjusted Balance amount: The controller has completed the T accounts for theCashandSalesaccounts as of January 30, but needs to attend an important conference in another city. She has requested that you prepare the T account for theCash Short and Overaccount as of January 30 also. You are told that the balance of the account is zero as of the beginning of January, and that all the company?s sales are in cash. Review the T accounts below, and then scroll down to complete theCash Short and OverT account and answer the associated question below it.

Cash
Balance 1/1/16	5,500	1/2/16 Establish Petty Cash	500
1/5/16	2,800
1/12/16	6,305
1/23/16	3,270
1/30/16	4,450
Balance	21,825

Sales
Balance 1/1/16	0
1/5/16	2,805
1/12/16	6,270
1/23/16	3,310
1/30/16	4,420
Balance	16,805

Review the T accounts above, and then complete theCash Short and OverT account and associated question below.

Cash Short and Over
Balance 1/1/16	0	1/12/16
1/5/16		1/30/16
1/23/16
Balance

Points: 4 / 9 What will happen to the ending balance in theCash Short and Overaccount at the end of the accounting period?

The discrepancy must be reported on the company website. The discrepancy must be reported to the Securities and Exchange Comission. It will be a miscellaneous expense on the income statement. It will be added to theOther Incomesection of the income statement.

Murdstone Co. issued a check on January 2 to establish apetty cash fundof $500. On January 31, the amount of cash in the petty cash fund is $442. The company would like to issue a check to replenish the fund, based on the following summary of petty cash receipts:

Office Supplies	$28.00
Miscellaneous Administrative Expense	$23.00

The company?s policy is to record any missing funds in the Cash Short and Over account. The new intern has prepared a proposed journal entry to record the replenishing of the petty cash fund: PAGE 17 JOURNAL

1	Jan. 31	Petty Cash		51.00
2		Cash			51.00

Prepare for your discussion with the intern by creating the corrected journal entry for the replenishment of the petty cash fund. Refer to the Chart of Accounts for exact wording of account titles.

Question not attempted.

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JOURNAL Score:0/49

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