Exam 8: Internal Control and Cash

Separating the responsibilities for purchasing, receiving, and paying for equipment is an example of the control procedure: separating operations, custody of assets, and accounting.

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in the bank reconciliation as a (n)

Journal entries based on the bank reconciliation are required in the company's accounts for

A firm's internal control environment is not influenced by

Journalize the entries to record the following:?Sept. 1Established a petty cash fund of $350.30The amount of cash in the petty cash fund is now $130. The fund is replenished based on the following receipts: office supplies, $116; postage, $100.? Journal Date Description Post. Ref. Debit Credit

When the petty cash fund is replenished, the petty cash account is credited for the total of all expenditures made since the fund was last replenished.

The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The March bank statement indicated an ending balance of $25,645. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $5,975. b. A deposit of $3,796 had been made too late to appear on the bank statement. c. A check for $1,482 returned with the statement had been incorrectly recorded as $482. The check was originally issued to pay on account. d. The bank collected $4,515 on a note left for collection of which $515 was interest revenue. e. Bank service charges for May amounted to $70. f. A check for $894 was returned by the bank because of insufficient funds. Prepare a bank reconciliation as of May 31. Journalize the necessary entries. Santiago~ Co.\\ Bank~ Reconciliation\\ May~ 31\\ \begin{array}{|l|l|l|} \hline ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~& ~~~~~~~~~~~~& ~~~~~~~~~~~~~~~~~~~~~\\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\\hline \end{array} Journal\\ \begin{array}{l} \begin{array} { | l | l | l | l | l | } \hline \text { Date } & \text { Description } & \begin{array} { c } \text { Post. } \\ \text { Ref. } \end{array} & \text { Debit } & \text { Credit } \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{array} \end{array}

Jackson Industries has collected the following information but needs assistance completing the table. The cash payments were 90% of collections.​​ Cash ?? Beg. balance \ 511,770 Collections ?? Payments \ 102,275 End. bal ance How much was the beginning balance of the cash account?

Which of the following should not be considered cash by an accountant?

The actual cash received during the week ended June 6 for cash sales was $8,276, and the amount indicated by the cash register total was $8,262. Journalize the entry to record the cash receipts and cash sales. Journal Date Description Post. Ref. Debit Credit