Journalize Cedar Springs Company’s June 20Y3 transactions for petty cash and cash short and over (pe

What you are recording in this problem

You have three separate cash situations:

1. Set up and later increase a petty cash fund (moves money between Cash and Petty Cash).
2. Record daily cash sales when actual cash does not match the cash register total (Cash Short and Over).
3. Replenish petty cash based on receipts (expense/asset debits, Cash credit, and any petty cash shortage/overage).

Establishing the petty cash fund (June 1)

Creating the fund moves money out of the main Cash account and into Petty Cash:

• Dr Petty Cash $1,000
• Cr Cash $1,000

Cash short or over from cash sales (June 12)

Compare actual cash received to register sales:

• Register sales: $9,440
• Actual cash: $9,506
• Over: $9,506 - $9,440 = $66

Entry:

• Dr Cash $9,506
• Cr Sales $9,440
• Cr Cash Short and Over $66

Replenishing petty cash (June 30)

1) Add the petty cash receipts (vouchers)

Receipts total: $$375+105+85+90+33+100+25+9+110 = 932$$

Classify them as instructed:

• Store supplies: $375
• Inventory (express charges): $105 + $110 = $215
• Office supplies: $85 + $90 + $33 = $208
• Misc. administrative expense: $100 + $25 + $9 = $134

2) Compute the petty cash shortage/overage

Fund size is $1,000 and cash on hand is $46. If receipts are $932, expected cash should be: $$1{,}000 - 932 = 68$$ Actual cash is $46, so shortage is: $$68 - 46 = 22$$

3) Record the replenishment

The check written to replenish equals cash needed to bring on-hand cash back to $1,000: $$1{,}000 - 46 = 954$$

Entry:

• Dr Store Supplies $375
• Dr Inventory $215
• Dr Office Supplies $208
• Dr Miscellaneous Administrative Expense $134
• Dr Cash Short and Over $22
• Cr Cash $954

Cash short or over from cash sales (June 30)

• Register sales: $13,390
• Actual cash: $13,350
• Short: $13,390 - $13,350 = $40

Entry:

• Dr Cash $13,350
• Dr Cash Short and Over $40
• Cr Sales $13,390

Increasing the petty cash fund (June 30)

Raising the fund from $1,000 to $1,200 requires adding $200 to Petty Cash:

• Dr Petty Cash $200
• Cr Cash $200