Murdstone, Inc. You've 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 company's January accounting records. You'll also be responsible for training the company's new accounting intern. Chart of Accounts ASSETS 110 Cash 111 Petty Cash REVENUE 410 Sales Revenue 610 Interest Revenue 112 Accounts Receivable EXPENSES 510 Cost of Goods Sold 115 Inventory 116 Store Supplies 117 Office Supplies 118 Prepaid Insurance 120 Land 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 125 Office Equipment 126 Accumulated Depreciation Office Equipment 516 Cash Over and Short 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 131 Notes Receivable 533 Insurance Expense 534 Office Supplies Expense LIABILITIES 535 Bank Service Charge 210 Accounts Payable 211 Salaries Payable 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 539 Miscellaneous Administrative Expense 213 Interest Payable 215 Notes Payable 710 Interest Expense EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Cash Over and Short The controller has completed the 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 Over and Short 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 company's 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 Over and Short T account and answer the associated question that follows it. Cash Balance 1/1 5,500 1/2 Establish Petty Cash 500 1/5 2,775 1/12 6,330 1/23 3,270 1/30 4,450 Balance 21,825 Sales Balance 1/1 1/5 2,780 1/12 6,300 Review the preceding T accounts, and then complete the Cash Over and Short T account and associated question that follows it. 1/23 3,330 1/30 4,410 Cash Over and Short 1/5 Balance 16,820 Balance 1/1 1/12 1/12 1/23 1/23 1/30 1/30 Balance What will happen to the ending balance in the Cash Over and Short account at the end of the accounting period? The discrepancy must be reported on the company website. It will be added to the other revenues section of the income statement. The discrepancy must be reported to the Securities and Exchange Commission. It will be a miscellaneous expense on the income statement