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Exam 8: Internal Control and Cash

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Question 51

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In preparing a bank reconciliation,the amount indicated by a credit memo for a note receivable collected by the bank is added to the balance per company's records.

A) True
B) False

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Question 52

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

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$15,095
($16,750 + ...

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Question 53

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A voucher system is an example of an internal control procedure over cash payments.

Credit memos from the bank

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695.This item would be included in the bank reconciliation as a (n)

The following data were gathered to use in reconciling the bank statement of Build-A-Lot:​ Required (1)What is the adjusted balance on the bank reconciliation? (2)Journalize any necessary entries for Build-A-Lot based on the bank reconciliation.

Bank reconciliation information for Kaden Co.for May 31 is as follows:​ Record the appropriate journal entry for Kaden Co.

Consider the following information taken from the cash account.Assume cash payments were 80% of collections.How much was the beginning balance of the cash account?

If an adjustment for an NSF check is made in a company's bank reconciliation,then the company must have written a bad check during the month.

List the principal advantages of electronic funds transfers.

Businesses that have several bank accounts,petty cash,and cash on hand would maintain a separate ledger account for each type of cash.

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

Cash equivalents include short-term investments that will be converted to cash within 120 days.

Describe the features of a voucher system and list typical supporting documents for a voucher.

On April 3,Snappy Sales decides to establish a $135 petty cash fund to relieve the burden on Accounting. (a) Journalize the establishment of the fund. (b) On April 11,the petty cash fund has receipts for mail and postage of $32.75,contributions and donations of$25.25,meals and entertainment of $68.00,and $9.75 in cash.Journalize the replenishment of the fund. (c) On April 12,Snappy Sales decides to increase petty cash to $175.Journalize this transaction.

In preparing a bank reconciliation,the amount indicated by a debit memo for bank service charges is added to the balance per company's records.

Stephanie Jo Company established a petty cash fund of $300 on May 1.At the end of the month,the petty cash fund has $42 in cash; receipts for postage,$39; entertainment,$146; and office supplies,$70.Prepare the needed journal entries,recording any discrepancy in the cash short and over account.​

Accompanying the bank statement was a debit memo for an NSF check received from a customer.What entry is required in the company's accounts?

Expenditures from a petty cash fund are documented by a petty cash receipt.

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