Exam 7: Internal Control and Cash

Green Valley Bank sent Comstock Industries its end-of-month bank statement for July.The end of month balance by the bank is $11,237.The statement shows that a deposit for $4,250 is in transit at the end of the statement period.The statement also revealed that checks for $87,$105,and $95 are outstanding.Green Valley collected a $4,000 note receivable plus $120 of interest revenue.The bank charges $20 for the collection service.The bank charges a monthly account fee of $35.The end-of-month balance per company books is $11,135. ​ Prepare a bank / account reconciliation and write any necessary journal entries for the reconciliation.

The bank reconciliation

A voucher is a written authorization to make a cash payment.

​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. ​ Record the appropriate journal entries that would be necessary for Jeffrey Co.

In preparing a bank reconciliation,the amount of outstanding checks is added to the balance per bank statement.

During a bank reconciliation process,

An element of internal control is

Which of the following would be subtracted from the balance per books on a bank reconciliation?

The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.

A bank reconciliation should be prepared periodically because

The objectives of internal control are to

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

Which of the following would be added to the balance per books on a bank reconciliation?

EFT

Consider the following information from the cash account.Assume cash payments were 84% of collections. How much was the beginning balance of the cash account?