Question 1

List at least five company policies that would be included in an internal control system.

Accepted Answer

1.Responsibilities and duties of employees will be divided.
2.All cash receipts will be deposited into the bank daily.
3.All cash payments except petty cash will be made by check.
4.Employees will be rotated.
5.All checks will be authorized.
6.All documents upon payment will be stamped paid.
7.All checks will be pre-numbered.
8.Monthly bank statements will be sent to and reconciled by someone other than the employees who handle,record or deposit cash.

Question 2

From the following information,prepare the bank reconciliation for Paula's Photography Studio for June.

Accepted Answer

The answer of From the following information,prepare the bank reconciliation...

Question 3

The entry to replenish a $300 petty cash fund,which has cash of $140 and valid receipts for $148,would include:

Accepted Answer

A) a credit to Cash for $160. 
B) a debit to Petty Cash for $160. 
C) a credit to Cash for $148. 
D) a credit to Petty Cash for $148. 
A) a credit to Cash for $160. 
B) a debit to Petty Cash for $160. 
C) a credit to Cash for $148. 
D) a credit to Petty Cash for $148. A

Question 4

Prepare journal entries for the following petty cash fund transactions:

Accepted Answer

The answer of Prepare journal entries for the following petty...

Question 5

If the ending balance in the Cash Short and Over account is a debit,it indicates that cash shortages have exceeded cash overages for the period.

Accepted Answer

A) True 
 B)False

Question 6

The credit recorded in the journal entry to establish the petty cash fund is to:

Accepted Answer

A) Cash. 
B) Petty Cash. 
C) Postage Expense. 
D) Withdrawals. 
A) Cash. 
B) Petty Cash. 
C) Postage Expense. 
D) Withdrawals.

Question 7

Outstanding checks:

Accepted Answer

A) have been deducted from the bank balance but not the checkbook records. 
B) have not been presented to the bank for payment and have not been subtracted from the checkbook. 
C) have not been presented to the bank for payment but have been subtracted in the checkbook. 
D) have been returned to the business for nonpayment. 
A) have been deducted from the bank balance but not the checkbook records. 
B) have not been presented to the bank for payment and have not been subtracted from the checkbook. 
C) have not been presented to the bank for payment but have been subtracted in the checkbook. 
D) have been returned to the business for nonpayment.

Question 8

The Petty Cash account is used to pay for small items such as postage stamps and supplies.

Accepted Answer

A) True 
 B)False

Question 9

A payment for $51 is incorrectly recorded on the checkbook stub as $15.The $36 error should be shown on the bank reconciliation as:

Accepted Answer

A) added to the balance per bank statement. 
B) deducted from the balance per bank statement. 
C) added to the balance per books. 
D) deducted from the balance per books. 
A) added to the balance per bank statement. 
B) deducted from the balance per bank statement. 
C) added to the balance per books. 
D) deducted from the balance per books.

Question 10

The bank charged another company's deposit to our account.This would be included on the bank reconciliation as a(n):

Accepted Answer

A) addition to the balance per books. 
B) subtraction from the balance per books. 
C) subtraction from the balance per bank. 
D) addition to the balance per bank. 
A) addition to the balance per books. 
B) subtraction from the balance per books. 
C) subtraction from the balance per bank. 
D) addition to the balance per bank.

Question 11

Which of the following transactions would most likely NOT be recorded in an auxiliary petty cash record?

Accepted Answer

A) Purchase of first aid supplies 
B) Purchase of postage stamps 
C) Payment on a $400 rent bill 
D) Payment of gas for the company vehicle 
A) Purchase of first aid supplies 
B) Purchase of postage stamps 
C) Payment on a $400 rent bill 
D) Payment of gas for the company vehicle

Question 12

The bank statement does NOT show:

Accepted Answer

A) the beginning bank balance of the cash at the start of the month. 
B) the checks the bank has paid and any deposits received. 
C) any other charges or additions to the bank balance. 
D) outstanding checks. 
A) the beginning bank balance of the cash at the start of the month. 
B) the checks the bank has paid and any deposits received. 
C) any other charges or additions to the bank balance. 
D) outstanding checks.

Question 13

The Petty Cash account is debited when:

Accepted Answer

A) the account is being replenished. 
B) the account balance is being decreased. 
C) the account balance is being increased. 
D) the account is closed. 
A) the account is being replenished. 
B) the account balance is being decreased. 
C) the account balance is being increased. 
D) the account is closed.

Question 14

Determine the adjusted cash balance per bank for Sam's Packaging on November 30,from the following information:
$$\begin{array} { | l | r | } 
\hline \text { Cash balance on the bank statement } & \$ 3,350 \
\hline \text { Customer's check returned-NSF } & 500 \
\hline \text { Customer's note collected by the bank } & 600 \
\hline \text { Deposits in transit, November 30 } & 1,400 \
\hline \text { Outstanding checks, November 30 } & 3,650 \
\hline
\end{array}$$

Accepted Answer

A) $1,250 
B) $1,100 
C) $1,550 
D) $1,350 
A) $1,250 
B) $1,100 
C) $1,550 
D) $1,350

Question 15

Which of the following accounts would most likely be debited in the replenishment of petty cash?

Accepted Answer

A) Cash 
B) Petty Cash 
C) Postage Expense 
D) Withdrawals 
A) Cash 
B) Petty Cash 
C) Postage Expense 
D) Withdrawals

Question 16

When completing a bank reconciliation,explain why all adjustments to the checkbook balance require journal entries?

Accepted Answer

These item

Question 17

Prepare the required journal entries from the bank reconciliation below as of the end of June:
The balance per general ledger is $200.
There is a debit memo for interest expense,$125.
There is a debit memo for a customer's NSF check $430.
Outstanding checks amount to $2,000.
This month's service charge amounts to $50.
Deposits in transit amount to $1,500.

Accepted Answer

The answer of Prepare the required journal entries from the...

Question 18

Determine the reconciled bank balance given the following:
The balance per bank statement is $ 110.
The balance per general ledger is $107.
There is a credit memo for a note collected,$408.
There is a credit memo for interest earned,$25.
There is a debit memo for a customer's NSF check $350.
Deposits in transit,$850.
Outstanding checks amount to $845.
This month's service charge amounts to $50.
There is a debit memo for check printing fees,$25.
$ ________

Accepted Answer

$115 [$110

Question 19

________ Owner withdrew $1,000 from the company for personal use

Accepted Answer

The answer of ________ Owner withdrew $1,000 from the company...

Question 20

The drawee is the:

Accepted Answer

A) person who writes the check. 
B) bank that drawer has an account with. 
C) the person to whom the check is payable. 
D) person named as the co-signer. 
A) person who writes the check. 
B) bank that drawer has an account with. 
C) the person to whom the check is payable. 
D) person named as the co-signer.

Exam 6: Banking Procedure and Control of Cash

List at least five company policies that would be included in an internal control system.

From the following information,prepare the bank reconciliation for Paula's Photography Studio for June.

The entry to replenish a $300 petty cash fund,which has cash of $140 and valid receipts for $148,would include:

Prepare journal entries for the following petty cash fund transactions:

If the ending balance in the Cash Short and Over account is a debit,it indicates that cash shortages have exceeded cash overages for the period.

The credit recorded in the journal entry to establish the petty cash fund is to:

Outstanding checks:

The Petty Cash account is used to pay for small items such as postage stamps and supplies.

A payment for $51 is incorrectly recorded on the checkbook stub as $15.The $36 error should be shown on the bank reconciliation as:

The bank charged another company's deposit to our account.This would be included on the bank reconciliation as a(n):

Which of the following transactions would most likely NOT be recorded in an auxiliary petty cash record?

The bank statement does NOT show:

The Petty Cash account is debited when:

Which of the following accounts would most likely be debited in the replenishment of petty cash?

When completing a bank reconciliation,explain why all adjustments to the checkbook balance require journal entries?

________ Owner withdrew $1,000 from the company for personal use

The drawee is the:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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