While examining cash receipts information, the accounting department determined the following information: opening cash balance $156, cash on hand $1,170.77, and cash sales per register tape $1,028.16.Prepare the required journal entry based upon the cash count sheet.

Given that,

Opening cash balance = $156

Cash on hand = $1,170.77

Cash sales per register tape = $1,028.16

Ending Cash Balance:

= Opening Cash Balance + cash sales per register tape

= $156 + $1,028.16

= $1,184.16 (It should have been $1,170.77)

Cash Over:

= Ending Cash Balance - Cash on hand

= $1,184.16 - $1,170.77

= $13.39

Actual Cash:

= Cash on hand - Opening Cash Balance

= $1,170.77 - $156

= $1,014.77

The Journal entry is as follows:

Cash A/c Dr. $1,014.77

Cash over/short A/c Dr. $13.39

        To Sales Revenue             $1,028.16

(To record the cash arrangements)

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