Exam 6: Reporting and Analyzing Cash and Internal Controls

In comparing the canceled checks on the bank statement with the entries in the accounting records,it is found that check number 4239 for November's rent was correctly written and drawn for $7,390,but was erroneously entered in the accounting records as $3,790.When preparing the November bank statement,the company should:

The number of days' sales uncollected:

A company established a petty cash fund of $100 on September 1.On September 10,the petty cash fund was replenished when there was $16 remaining and there were petty cash receipts for: office supplies,$27; courier,$32; and postage,$22.On September 15,the petty cash fund was increased to $125 in total.Record the above transactions in general journal form.

When two clerks share the same cash register,which internal control principle is violated?

Describe the banking activities that promote the control of cash and identify the internal control objectives served by the banking activities.

An analysis that explains any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a (n):

Fluffy Pet Grooming deposits all cash receipts on the day when they are received and all payments are made by check.At the close of business on June 30,its Cash account shows a $14,811,debit balance.Fluffy Pet Grooming's June 30 bank statement shows $14,472 on deposit in the bank.Prepare a bank reconciliation for Fluffy Pet Grooming using the following information a. Outstanding checks as of June 30 total $ 2,261 . b. The June 30 bank statement included a$ 75 debit memorandum for bank services. c. Check No. 919, listed with the canceled checks, was correctly drawn for \$ 789 in payment of a utility bill on June 15. Fluffy Pet Grooming mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $ 798 . d. The June 30 cash receipts of $ 2,534 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement What is the adjusting journal entry required to record the increase in cash for the adjusted bank balance?

The number of days' sales uncollected is calculated by:

A properly designed internal control system is a key part of accounting information systems design,analysis and performance.

_______________________ are deposits made and recorded by the depositor but not yet recorded on the bank statement.

Triple Company's accountant made an entry that included the following items: debit postage expense $12.42; debit office supplies expense $27.33,debit to cash over/short $2.19.If the original amount in petty cash is $320,how much is in petty cash before the reimbursement?

At the end of the current period,a company reported $475,000 in net credit sales and $75,000 in ending accounts receivable.Calculate this company's days' sales uncollected at the end of the current period.

The voucher register is a journal that is used to record all approved vouchers within the company.

Triple Company's accountant made an entry that included the following items: debit postage expense $12.42; debit office supplies expense $27.33,credit to cash over/short $2.19.If the original amount in petty cash is $320,how much is in petty cash before the reimbursement?

Internal control systems used to monitor and control operations are a low priority for managers within the company.

A company established a $400 petty cash fund by issuing a check to the custodian on October 1.On October 15,the petty cash fund was replenished and increased to $1,000 in total.The contents of the petty cash fund at the time of the October 15 replenishment were: Currency and coins \ 12 Petty cash receipts for: Transportation-in for inventory \ 39 Delivery expense 138 Repairs to office equipment 47 Postage 114 Entertainment of customers Total \ 403 Prepare the general journal entry to record both the reimbursement and the increase of the petty cash fund on October 15.

For good internal controls over cash,all payments should be made from the petty cash,except for very large payments.

Explain the differences between cash and cash equivalents.

The days' sales uncollected ratio reflects on the liquidity of accounts receivable.