Based On The Information, Prepare The Weekly Entries For Cas

Based On The Information Prepare The Weekly Entries For Cash Receipts

Based on the information, prepare the weekly entries for cash receipts from service fees and cash short and over. A change fund of $100 is maintained. If an amount box does not require an entry, leave it blank. When required, enter amounts in dollars and cents. DATE ACCOUNT TITLE DOC. NO. POST. REF. DEBIT CREDIT -- Apr. 2 Cash Service Fees Accounts Receivable Cash Cash Short and Over Service Fees Cash Cash Cash

Paper For Above instruction

In accounting, recording cash receipts accurately is crucial for maintaining the integrity of financial statements. The process involves recognizing cash received from service fees, adjustments for cash short and over, and managing the change fund. For the given scenario, weekly entries are prepared based on the provided transaction details and predefined accounts.

On April 2, a typical journal entry reflects the receipt of cash from customers paying for services rendered. Since a change fund of $100 is maintained, this amount is considered when reconciling cash. The accounts involved usually include Cash, Service Fees (or Service Revenue), Accounts Receivable, and Cash Short and Over. Accordingly, entries will debit cash for the total cash received, credit service fees to record revenue earned, and account for discrepancies via Cash Short and Over if any shortages or overages occur.

The general journal entry on April 2 might look like this:

  • Debit Cash for the amount received, including the change fund and any additional cash collected.
  • Credit Service Fees to recognize revenue from services performed.
  • If applicable, adjust for cash short and over: debit Cash Short and Over if there is a shortage or credit if there is an overage, balancing any discrepancies.

By maintaining detailed documentation with document numbers and posting references, the organization's financial records remain accurate and verifiable. Each transaction should include a description, date, document number, and reference to the posting source.

In conclusion, preparing weekly cash receipt entries involves recognizing the total cash received, ensuring the change fund balance remains intact, recording earned service fees, and adjusting for cash discrepancies when they arise. Proper recording and reconciliation foster accurate financial reporting and effective cash management.

References

  • Horngren, C. T., Sundem, G. L., Elliott, J. A., & Philbrick, D. R. (2020). Introduction to Financial Accounting (11th ed.). Pearson.
  • Wild, J. J., Subramanyam, K. R., & Halsey, R. F. (2021). Financial Statement Analysis (12th ed.). McGraw-Hill Education.
  • AccountingTools. (2022). Recording Cash Receipts. https://www.accountingtools.com/articles/recording-cash-receipts.html
  • Journal of Accountancy. (2020). Best practices in cash receipt recording. https://www.journalofaccountancy.com
  • CPA Journal. (2019). Handling Cash Short and Over. https://www.cpajournal.com/2019/02/01/handling-cash-short-and-over/
  • Financial Accounting Standards Board (FASB). (2023). Revenue Recognition Standard. https://fasb.org
  • IRS. (2022). Recordkeeping for cash receipts. https://www.irs.gov
  • Investopedia. (2021). Cash Short and Over. https://www.investopedia.com/terms/c/cashshortandover.asp
  • AccountingCoach. (2023). Cash Receipts. https://www.accountingcoach.com/cash-receipts/explanation
  • Public Company Accounting Oversight Board (PCAOB). (2020). Internal Control over Financial Reporting. https://pcaobus.org

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