Question

Pr 8-2a transactions for petty cash, cash short and over obj. 3, 6 jeremiah restoration company completed

Answer 1

Final answer:

The question is about accounting procedures for managing petty cash and handling discrepancies known as cash short and over. It involves setting up a petty cash fund, recording transactions for small cash disbursements, and reconciling the fund during replenishment.

Step-by-step explanation:

The subject of your question seems to relate to accounting transactions for petty cash, and handling of cash short and over. In accounting, the petty cash system is used to handle small cash expenses that don’t warrant writing a check or using a credit card. A petty cash fund is typically established with a set amount of money.

When the fund is low, the custodian will request a replenishment, which involves recording the expenditures in the company’s accounts. If the actual cash in the petty cash fund differs from the recorded amount, this indicates a cash short and over situation.

Transactions for petty cash involve setting up the fund, disbursing cash for minor expenses, and replenishing the fund. To record petty cash transactions in the company's books, the custodian must provide receipts that account for expenditures.

During replenishment, if the receipts total less than the amount disbursed, the difference is recorded as a ‘cash over’. Conversely, if the receipts are more than the amount disbursed, it is recorded as a ‘cash short’, indicating either excess cash expenditure or an accounting error.

The complete question is: Pr 8-2a transactions for petty cash, cash short and over obj. 3, 6 jeremiah restoration company completed is:

Answer 2

The student's question pertains to accounting practices in managing petty cash, cash short, and over for Jeremiah Restoration Company. It involves setting up and replenishing a petty cash fund, and recording any discrepancies in cash against the expected balance.

Step-by-step explanation:

The question is regarding the transactions for petty cash, cash short and over, which are terms used in accounting to keep track of small amount cash expenditures, and to manage the discrepancies between the expected cash amount and the actual cash amount on hand, respectively. Jeremiah Restoration Company is likely involved in reconciling their petty cash fund, which requires answering the following:

• How to establish a petty cash fund.
• How to replenish the petty cash fund when it is low.
• How to deal with the cash overage or shortage resulting from petty cash transactions.

This involves making corresponding journal entries, which entails:

1. Debiting the petty cash account when funds are established or replenished.
2. Crediting the cash account to reflect the disbursement.
3. When replenishing, the petty cash receipts are totaled, and expenses are recorded to their respective accounts.
4. Any discrepancies (cash short and over) are also recorded accordingly.

These transactions are vital for maintaining accurate cash records and ensuring that the company’s financial statements are correct.