You just joined XYZ Company as their junior accountant. Your first task is to prepare a bank reconciliation in good form at June 30. Your boss provides you with the bank statement and the following information from the accounting records at June 30 \[\begin{array} { | l | r | } \hline \text { Non-sufficient funds (NSF) cheque retuned by bark } & \$ 350 \\ \hline \text { Deposit in trarsit on June } 30 & \$ 1,015 \\ \hline \text { Outstarding cheques at Jure } 30 & \$ 2,660 \\ \hline \text { Balance per bark statement on June } 30 & \$ 16,280 \\ \hline \text { Bark service charges } & \$ 35 \\ \hline \end{array}\] Your review the bank statement at June 30 shows that a cheque incorrectly recorded by company as $2,500 was correctly recorded by the bank at $2,050. What is the unadjusted (opening) balance of cash in XYZ's general ledger on June 30?

A) $15,470 B) $14,285 C) $14,570 D) $16,703 E) $16,470 A) $15,470 B) $14,285 C) $14,570 D) $16,703 E) $16,470

The Crown Company established a $1,000 petty cash fund by issuing a cheque to the custodian on October 1. On October 15, the petty cash fund was replenished and increased to $1,500. The contents of the petty cash fund prior to the October 15 replenishment were: \[\begin{array} { | l | r | r | } \hline \text { Currency and coirs } & & \$ 112 \\ \hline \text { Petty cash receipts for: } & & \\ \hline \text { Trarsportation-ir } & \$ 137 & \\ \hline \text { Delivery expense } & 240 & \\ \hline \text { Repairs to office equiprnent } & 153 & \\ \hline \text { Postage } & 230 & \\ \hline \text { Entertainment of custcmers } & 130 & 890 \\ \hline \text { Total } & & \$ 1,002 \\ \hline \end{array}\] Prepare the general journal entry to record the reimbursement and increasing of the fund on October 15.

The answer of The Crown Company established a $1,000 petty...

Exam 7: Internal Control and Cash

The bank statement and relevant portions of Bernie Company's cash records for the month ended June 30, 2020 are given below. Prepare the bank reconciliation at June 30, 2020.

(Essay)

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Question 121

Discuss how the principles of internal control apply to cash receipts.

(Essay)

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Question 122

Collusion occurs when a person embezzles money from a company and tries to hide the evidence.

(True/False)

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Question 123

Explain the difference between cash and cash equivalents.

(Essay)

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Question 124

Small differences between cash sales and the amounts on the cash register are directly debited or credited to the cash account.

(True/False)

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Question 125

Maintaining accurate records is an important internal control principle.

(True/False)

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Question 126

An income statement account used to record cash overages and cash shortages arising from omitted petty cash receipts and from errors in making change is the

(Multiple Choice)

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Question 127

Quick assets include cash, inventory, and receivables.

(True/False)

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Question 128

When preparing a bank reconciliation, adjustments are made to the bank side and not the ledger (book) side.

(True/False)

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Question 129

The clerk who has access to the cash in the cash register should not have access to the register tape or file.

(True/False)

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Question 130

If Cash Over and Short has a debit at the end of the period, the dollar amount represents miscellaneous revenue.

(True/False)

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Question 131

Basic services provided by banks such as bank accounts, deposit slips and cheques contribute to the control and safeguarding of cash.

(True/False)

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Question 132

The entry necessary to establish a petty cash fund should include

(Multiple Choice)

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Question 133

Liquidity problems exist for a company when its quick ratio

(Multiple Choice)

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Question 134

Z-Mart made a bank deposit on September 30 that did not appear on September's bank statement. In preparing September's bank reconciliation, the company should

(Multiple Choice)

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Question 135

You just joined XYZ Company as their junior accountant. Your first task is to prepare a bank reconciliation in good form at June 30. Your boss provides you with the bank statement and the following information from the accounting records at June 30 Non-sufficient funds (NSF) cheque retuned by bark \ 350 Deposit in trarsit on June 30 \ 1,015 Outstarding cheques at Jure 30 \ 2,660 Balance per bark statement on June 30 \ 16,280 Bark service charges \ 35 Your review the bank statement at June 30 shows that a cheque incorrectly recorded by company as $2,500 was correctly recorded by the bank at $2,050. What is the unadjusted (opening) balance of cash in XYZ's general ledger on June 30?

(Multiple Choice)

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Question 136

The petty cash fund should be reimbursed at the end of the period even if the fund is not low on money.

(True/False)

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Question 137

The Crown Company established a $1,000 petty cash fund by issuing a cheque to the custodian on October 1. On October 15, the petty cash fund was replenished and increased to $1,500. The contents of the petty cash fund prior to the October 15 replenishment were: Currency and coirs \ 112 Petty cash receipts for: Trarsportation-ir \ 137 Delivery expense 240 Repairs to office equiprnent 153 Postage 230 Entertainment of custcmers 130 890 Total \ 1,002 Prepare the general journal entry to record the reimbursement and increasing of the fund on October 15.

(Essay)

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Question 138

Credit card is seen as an advantage by businesses because the cash is normally received quicker than with other forms of extended credit.

(True/False)

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Question 139

Internal control procedures:

(Multiple Choice)

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Question 140

Showing 121 - 140 of 142

The bank statement and relevant portions of Bernie Company's cash records for the month ended June 30, 2020 are given below. Prepare the bank reconciliation at June 30, 2020.

Discuss how the principles of internal control apply to cash receipts.

Collusion occurs when a person embezzles money from a company and tries to hide the evidence.

Explain the difference between cash and cash equivalents.

Small differences between cash sales and the amounts on the cash register are directly debited or credited to the cash account.

Maintaining accurate records is an important internal control principle.

An income statement account used to record cash overages and cash shortages arising from omitted petty cash receipts and from errors in making change is the

Quick assets include cash, inventory, and receivables.

When preparing a bank reconciliation, adjustments are made to the bank side and not the ledger (book) side.

The clerk who has access to the cash in the cash register should not have access to the register tape or file.

If Cash Over and Short has a debit at the end of the period, the dollar amount represents miscellaneous revenue.

Basic services provided by banks such as bank accounts, deposit slips and cheques contribute to the control and safeguarding of cash.

The entry necessary to establish a petty cash fund should include

Liquidity problems exist for a company when its quick ratio

Z-Mart made a bank deposit on September 30 that did not appear on September's bank statement. In preparing September's bank reconciliation, the company should

The petty cash fund should be reimbursed at the end of the period even if the fund is not low on money.

Credit card is seen as an advantage by businesses because the cash is normally received quicker than with other forms of extended credit.

Internal control procedures:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Accounting Information Systems

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