Exam 6: Banking Procedure and Control of Cash

Determine the unadjusted balance per bank statement given the following: The balance per general ledger is $210 There is a credit memo for a note collected, $450 There is a debit memo for interest expense, $100 There is a debit memo for a customer's NSF check $375 Outstanding checks amount to $2,000 This month's service charge amounts to $50 Deposits in transit amount to $1,500 $ ________

An example of an internal control is:

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

Riley's Limousines' entry to establish a $75 petty cash fund for the office would include a:

Indicate which effect(s)each situation will have: 1. New check written 2. Recorded in the general journal 3. Recorded in auxiliary petty cash record 4. Petty cash voucher prepared -________ Owner withdrew money from the company for personal use

The entry to establish the petty cash fund was not completed. This would cause:

Samantha's Tutoring Service's $200 petty cash fund has a shortage of $4. The facts are: $80 in valid receipts for expenses; $116 in coins and currency. The journal entry to replenish the petty cash fund would include a:

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). Example: -

What is the purpose of internal control?

Any adjustment to the depositor's records because of an item on the bank statement requires a journal entry.

The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes: 1. A check for $200 to pay the electric bill was recorded on the books as $20. 2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30. 3. Checks outstanding totaled $260. 4. Bank service charges were $50. 5. Deposits in transit were $2,140. Which item(s)should be subtracted from the balance per books?

The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes: 1. A check for $200 to pay the electric bill was recorded on the books as $20. 2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30 3. Checks outstanding totaled $260. 4. Bank service charges were $50. 5. Deposits in transit were $2,140. The adjusted cash balance at the end of August should be:

How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?

Using correct cash handling procedures, deposits should be made by the end of the week.

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

Prepare journal entries for the following petty cash fund transactions:

Prepare journal entries for the following petty cash fund transactions:

Cash Short and Over is:

The change fund is what type of account?

The normal balance of the Petty Cash account is a credit.