Exam 8: Internal Control and Cash

Park Place received a bank statement showing a balance of $1,400. What is the adjusted balance if there was a bookkeeper error of $100 in the depositor's favour, two outstanding cheques totalling $40, a service charge of $10, a deposit in transit of $150, and interest revenue of $26 earned by the depositor?

Before any internal control procedure is initiated, a question which should be addressed by the company is:

All of the following are controls over petty cash except:

The Cash Short and Over account is a permanent account that appears on the balance sheet.

If a bookkeeper mistakenly recorded a payment as $83 instead of the correct amount of $38, the error would be shown on the bank reconciliation as a:

A cheque issued to settle an account for $145 was recorded on the books as $1,450. On a bank reconciliation, this will appear as a(n):

Using the following data, compute the book balance for Backwater Services before the preparation of a bank reconciliation on May 31, 2019: - The bank statement reveals a balance of $5,642. - Outstanding cheques on May 31, 2019, amount to $4,620 - The bank statement indicates service charges of $36. - Deposits in transit on May 31, 2019, amount to $1,490. - The bookkeeper mistakenly recorded a $21 cheque payment to a vendor as $210. - A note had been collected by the bank for $1,000 plus $50 interest.

Janet Lee Music created a petty cash fund on July 1, 2019 with an imprest balance of $200. During July, Gerry Lynn, the fund custodian, signed the following petty cash tickets: Ticket \# Item Amount 1 Office supplies \ 19.42 2 Postage 9.00 3 Courier charges 12.00 4 Sheet music 77.33 5 Office supplies 29.14 On July 31, prior to the replenishment, the fund contained these tickets plus $55.11. Required: Prepare journal entries to create the fund, replenish the fund, and increase the fund to $250. General Journal Date Accounts Debit Credit

Internal control is the organizational plan and related measures that:

Internal control is the organizational plan that companies use to protect their assets and records.

Which of the following items are both reconciling items on the bank side of the reconciliation?

Assuming Charlton Company has the following December 31 year end account balances: Chequing \ 2,450 Savings 5,650 Petty cash 250 Cash and Cash equivalents would be reported on the Balance Sheet as:

Which of the following is a security procedure designed for e-commerce that rearranges text messages by a mathematical process?

The following information is available for Andersen Company for the month ending June 30, 2019. • Balance per the bank statement is $10,241.43. • Balance per books is $9,745.06. • Cheque #506 for $1,948.52 and cheque #510 for $1,800.25 were not shown on the June 30 bank statement. • A deposit in transit of $5,113.40 had not been received by the bank when the bank statement was generated. • A bank debit memo indicated an NSF cheque in the amount of $79 written by Bruce Garrett to Andersen Company on June 13. • A bank credit memo indicated a note collected by the bank of $1,900 and interest revenue of $75 on June 20. • The bank statement indicated service charges of $35. What is the adjusted book balance?

Classify each of the following reconciling items of the Tic and Tac Company as: -Bank service charges ________

In a bank reconciliation, an EFT cash payment is:

Classify each of the following reconciling items of the Tic and Tac Company as: -Bank withdrew from Tic and Tac's account $1,100 for a cheque written for $110 ________

The following information is needed to reconcile the cash balance for Woods Paper Products. • A deposit of $5,794.62 is in transit. • Outstanding cheques total $1,533.25. • The book balance is $5,695.62. • The bookkeeper recorded a $1,524.00 cheque as $15,240 in payment of the current month's rent. • The bank balance at February 28, 2008 was $16,500.25. • A deposit of $300 was credited by the bank for $3,000. • A customer's cheque for $1,280 was returned for non-sufficient funds. • The bank service charge is $70. What was the adjusted bank balance?

Members of CPA Canada are expected to maintain higher standards than society in general:

Table 8-4 The October 31st bank reconciliation, the November 30th bank statement and the November 30th general ledger for K&B Consulting is as follows: -Refer to table 8-4. Prepare the adjusting entries resulting from the November bank reconciliation.