Exam 7: Internal Control and Cash

Journalize the entries to record the following: Sept. 1 Established a petty cash fund of $350.30 The 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.Record any missing funds in the cash short and over account.Journal

During a bank reconciliation process,

Which of the following would not be included with the cash and cash equivalents on the balance sheet?

The following data were gathered to use in reconciling the bank account of Savannah Company: What is the adjusted balance on the bank reconciliation?

The control environment in an internal control structure is the overall attitude of management and employees about the importance of internal control.

An example of good internal controls over cash payments is the taking of all cash discounts offered.

Match each item to a bank statement adjustment, a company books adjustment, or either. -Outstanding checks A)bank statement adjustment B)company books adjustment C)either

A bank reconciliation should be prepared periodically because

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer. What entry is required in the company's accounts?

Which of the following items that appeared on the bank reconciliation did not require a journal entry?

Bank reconciliation information for Kaden Co. for May 31 is as follows: (a)The bank statement balance is $2,936.(b)The cash account balance is $3,194.(c)Outstanding checks amounted to $465.(d)Deposits in transit are $655.(e)The bank service charge is $50.(f)A check for $97 for supplies was recorded as $79 in the ledger.​ Record the appropriate journal entry for Kaden Co.

The portion of an invoice that is returned with payment is a

There are three internal control objectives and they are to safeguard the company's reputation, ensure accurate financial reports, and ensure compliance with applicable laws.

Using the following information, prepare a bank reconciliation for Candace Co. for May 31: (a)The bank statement balance is $2,936.(b)The cash account balance is $3,194.(c)Outstanding checks amounted to $465.(d)Deposits in transit are $655.(e)The bank service charge is $50.(f)A check for $97 for supplies was recorded as $79 in the ledger.

The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. After the journal entries for October had been posted, the cash account had a balance of $8,998.​ (a)Cash sales of $945 had been erroneously recorded in the cash receipts journal as $495.(b)Deposits in transit not recorded by bank, $778.(c)Bank debit memo for service charges, $40.(d)Bank credit memo for note collected by bank, $23,985 plus $885 interest.(e)Bank debit memo for $756 NSF (not sufficient funds) check from Calin Sams, a customer.(f)Checks outstanding, $1,860.Record the appropriate journal entries that would be necessary for Jeffrey Co.

When a firm uses internal auditors, it is adhering to which of the following internal control elements?

Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts?

Journalize the entries to record the following: Apr. 1 Established a petty cash fund of $350.10 Cash sales for the day, according to the cash register records, totaled $3,120. The actual cash received from cash sales was $3,122.30 The amount of cash in the petty cash fund is now $130. The fund is replenished based on the following petty cash receipts: office supplies, $98; postage, $106; miscellaneous, $12. Record any missing funds in the cash short and over account.30 Cash sales for the day, according to the cash register records, totaled $6,350. The actual amount of cash received for the day was $6,336.30 Decreased the petty cash fund by $100.​ Journal

Which one of the following reflects a weak internal control system?

A voucher is a form on which is recorded pertinent data about a liability and the particulars of its payment.