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Establishing a Change Fund On February 1 Sunset Surfwear issued Check 115 to establish a
Chapter 22, Problem 22-4(choose chapter or problem)
Establishing a Change Fund
On February 1 Sunset Surfwear issued Check 115 to establish a change fund of $150. At the end of the business day on February 2, the shop’s cash register tape showed cash sales of $340 plus sales taxes of $17. An actual cash count of the money indicated that $505 was in the cash register drawer.
Instructions
1. Record the entry to establish the change fund on page 1 of the general journal.
2. Prepare a cash proof for Feb. 2. Sign your name on the Salesclerk line.
3. Record the cash sales for Feb. 2 on page 1 of the general journal.
Analyze Determine whether the shortage or overage represents revenue or expense to the business.
Questions & Answers
QUESTION:
Establishing a Change Fund
On February 1 Sunset Surfwear issued Check 115 to establish a change fund of $150. At the end of the business day on February 2, the shop’s cash register tape showed cash sales of $340 plus sales taxes of $17. An actual cash count of the money indicated that $505 was in the cash register drawer.
Instructions
1. Record the entry to establish the change fund on page 1 of the general journal.
2. Prepare a cash proof for Feb. 2. Sign your name on the Salesclerk line.
3. Record the cash sales for Feb. 2 on page 1 of the general journal.
Analyze Determine whether the shortage or overage represents revenue or expense to the business.
ANSWER:Step 1 of 4
Change fund refers to the amount of money that includes various denominations of coins and bills which can be used to make a change in cash transactions.