QS 8-6 Chapter 8

J Lclusively for cash receipts. A guideline for safeguarding cash is to separate the duties of those who have custody of cash from those who keep cash records. Senaration of duties eliminates the possibility of collusion to steal an asset and hide the theft from the records. Record the journal ent the journal entry for Sales and for Cash Over and Short for each of the following separate situations. cash register's record shows $420 of cash sales, but the count of cash in the register is $430. cash register's record shows $980 of cash sales, but the count of cash in the register is $972. Q5 8.5 Cash Over and P1 Brooks Agency set up a petty cash fund for $150. At the end of the current period, the fund contained 28 and had the following receipts: entertainment, $70: postage, $30; and printing, $22. Prepare jour- nal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the QS 8-6 Petty cash aco P2 current period. Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry. a. Fund amount is being reduced. b. Fund amount is being increased. c. Fund is being eliminated. d. Fund is being established, er through g, indicate whether its amount (1) affects the bank or book side of a bank reconciliation, (2) is an addition or a subtraction in a bank reconciliation, and (3) requires an adjusting journal entry. OS 8.7 Bank recond P3 Bank or Book Side Add or Subtract Adj. Entry or Not a. Interest on cash balance................ b. Bank service charges ........ C Minimum balance bank fee ...... d. Outstanding checks ......... e. Collection of note by bank .. NSF checks