Accounting help!!?

Question

1. Receipts from cash sales of $9,500 were recorded incorrectly in the cash receipts journal as $5,900. What entry is required in the depositor's accounts

a. debit Sales; credit Cash

b. debit Cash; credit Accounts Receivable

c. debit Cash; credit Sales

d. debit Accounts Receivable; credit Cash

2. A $100 petty cash fund has cash of $18 and receipts of $80. The journal entry to replenish the account would include a

a. credit to Petty Cash for $84

b. debit to Cash for $80

c. debit to Cash Over and Short for $2

d. credit to Cash for $80

3. During 2007, Creative Inc has monthly cash expenses of $150,000. On December 31, 2007, their cash balance is $1,550,000. The ratio of cash to monthly cash expenses is

a. 9.7

b. 10.3

c. 10.7

d. 11.1

Thanks for the help guys, I just can't seem to get this stuff. explanations would be extremely helpful! (but not necessary)

Answer 1

1. C basic basis. you are increasing the cash and the sales for this. since they are cash sales you record the sale when the cash is received and it would never get to AR

2. C, the cash over and short account in an expense account for the error in the missing 2 dollars

3. B. i just divide 1,550,000 by the 150,000 but i have never heard of this ratio so i don't know

Answer 2

1. c.  Since it was cash sales does not affect A/R   Orginal Entry would have been CR Sales DR Cash for 5,900 entry Should have been CR Sales 9,500 DR Cash 9,500

2. c. to record the Difference between starting Balance of $100.00 removal of $80 for items and the cash left of 18.00 rather than 20.00

3. b 1,550,000/150,000