![COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<](https://www.bartleby.com/isbn_cover_images/9781260255157/9781260255157_largeCoverImage.gif)
Describe cash shortage and the way in which it is recorded.
![Check Mark](/static/check-mark.png)
Explanation of Solution
Cash:
Cash can be defined as a current asset which is recorded under the
Generally, there can be some errors while preparing cash account. These errors can be found when the cash is less or more than the cash recorded in the cash register. When the receipts of cash are more than the sales recorded in the register, then the amount of cash is more. When the receipts of cash are less than the sales recorded in the register, then the amount of cash is less.
The over and under valuation of cash is recorded in the cash short or over account. The cash will be more and will be treated as revenue when the cash short or over account has credit balance. If the account is having a debit balance, then it will be treated as shortage that is an expense.
Want to see more full solutions like this?
Chapter 9 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
- Timberline Services Company, a division of a major energy company, provides various services to the operators in the Rocky Mountain oil fields. For the most recent year, the company reported sales of $22,500,000, net operating income of $7,500,000, and average operating assets of $40,000,000. What is the margin for Timberline Services Company?helparrow_forward5 PTSarrow_forwardGeneral accounting questionarrow_forward
- general accountingarrow_forwardProvide answerarrow_forwardA firm purchases machinery, which has an estimated useful life of 14 years and no salvage value, for $70,000 at the beginning of the accounting period. What is the adjusting entry for depreciation at the end of one month if the firm uses the straight-line method of depreciation?arrow_forward
- Do fast answer of this accounting questionsarrow_forwardA firm has a return on equity of 22 percent. The total asset turnover is 2.9 and the profit margin is 5 percent. The total equity is $7,500. What is the amount of the net income? Right Answerarrow_forwardFinancial Accounting Questionarrow_forward
- Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337395083/9781337395083_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)