Youve just been hired as an accountant at the Murdstone Co , a retailer of supplies for arts and crafts Since the previous accountant left his position suddenly, the controller of Murdstone Co 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 Chart of Accounts CHART OF ACCOUNTS Murdstone Co General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Office Supplies 118 Prepaid Insurance 120 Land 123 Store Equipment 124 Accumulated Depreciation Store Equipment 125 Office Equipment 126 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 212 Unearned Rent 213 Customer Refunds Payable 215 Notes Payable EQUITY 310 Edward Murdstone, Capital 311 Edward Murdstone, Drawing REVENUE 410 Sales 610 Rent Revenue EXPENSES 510 Cost of Merchandise Sold 516 Cash Short and Over 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense Store Equipment 523 Delivery Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense Office Equipment 533 Insurance Expense 534 Office Supplies Expense 539 Miscellaneous Administrative Expense 710 Interest Expense 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 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 Y5 5,500 1 2 Y5 Establish Petty Cash 500 1 5 Y5 2,800 1 12 Y5 6,305 1 23 Y5 3,270 1 30 Y5 4,450 Balance 21,825 Sales Balance 1 1 Y5 0 1 5 Y5 2,805 1 12 Y5 6,295 1 23 Y5 3,320 1 30 Y5 4,400 Balance 16,820 Review the T accounts previously shown, and then complete the Cash Short and Over T account and the following associated question Cash Short and Over Balance 1 1 Y5 0 1 12 Y5 1 5 Y5 1 30 Y5 1 23 Y5 Balance Q) What will happen to the ending balance in the Cash Short and Over account at the end of the accounting period a The discrepancy must be reported to the Securities and Exchange Commission b It will be a miscellaneous expense on the income statement c It will be added to the Other revenue section of the income statement d The discrepancy must be reported on the company website I need a answer for last question

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 23, 2024

Youve just been hired as an accountant at the Murdstone Co., a retailer of supplies for arts and crafts. Since the previous accountant left his

Youve just been hired as an accountant at the Murdstone Co., a retailer of supplies for arts and crafts. Since the previous accountant left his position suddenly, the controller of Murdstone Co. 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.

Chart of Accounts

CHART OF ACCOUNTS

Murdstone Co.

General Ledger

	ASSETS
110	Cash
111	Petty Cash
112	Accounts Receivable
115	Merchandise Inventory
117	Office Supplies
118	Prepaid Insurance
120	Land
123	Store Equipment
124	Accumulated Depreciation-Store Equipment
125	Office Equipment
126	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
212	Unearned Rent
213	Customer Refunds Payable
215	Notes Payable

	EQUITY
310	Edward Murdstone, Capital
311	Edward Murdstone, Drawing

	REVENUE
410	Sales
610	Rent Revenue

	EXPENSES
510	Cost of Merchandise Sold
516	Cash Short and Over
520	Sales Salaries Expense
521	Advertising Expense
522	Depreciation Expense-Store Equipment
523	Delivery Expense
529	Miscellaneous Selling Expense
530	Office Salaries Expense
531	Rent Expense
532	Depreciation Expense-Office Equipment
533	Insurance Expense
534	Office Supplies Expense
539	Miscellaneous Administrative Expense
710	Interest Expense

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.

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.