Mastery Problem: Internal Control and Cash

Murdstone, Inc.,

Youve just been hired as an accountant at Murdstone, Inc., a retailer of supplies for arts and crafts. Since the previous accountant left his position suddenly, the controller of Murdstone, Inc. has asked for your assistance in filling in some missing data for the companys January accounting records. Youll also be responsible for training the companys new accounting intern.

Cash Short and Over

The controller has completed the T accounts for the cash and sales accounts as of January 30, but needs to attend an important conference in another city. She has requested that you prepare the T account for the cash short and over account 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 companys sales are in cash. To simplify, this problem assumes that a company has only one bank account, which is identified in the Ledger as Cash.

Review the following T accounts, and then scroll down to complete the cash short and over T account and answer the associated question that follows it.

Cash
Balance 1/1	5,500	1/2 Establish Petty Cash	500
1/5	2,850
1/12	6,305
1/23	3,270
1/30	4,450
Balance	21,875

Sales
		Balance 1/1	0
		1/5	2,855
		1/12	6,295
		1/23	3,330
		1/30	4,380
		Balance	16,860

Review the preceding T accounts, and then complete the cash short and over T account and associated question that follows it.

Cash Short and Over
Balance 1/1	0	1/12	fill in the blank 5e5fb8098f8a013_2
1/5	fill in the blank 5e5fb8098f8a013_4	1/30	fill in the blank 5e5fb8098f8a013_6
1/23	fill in the blank 5e5fb8098f8a013_8
		Balance	fill in the blank 5e5fb8098f8a013_9