1. Andy has worked for Dr. Heather Thomas for several years. Andy demonstrates a loyalty that is rare among employees. He hasn't taken a vacation in the last three years. One of Andy's primary duties at the medical office is to open the mail, list the checks received and post the payment to the customers accounts receivable. He also takes cash from patients at the cashier window as patients leave. He puts the cash in the top desk drawer. At times it is so hectic that Andy doesn't bother with giving each patient a receipt for the cash paid on their accounts. When the traffic is slow in the office, Andy offers to help Eve prepare checks for vendor payment. She is always happy to receive his help, because he is a very hard worker. He is very good with numbers and also does the monthly bank reconciliation. Instructions: List five different internal control procedures violated in this medical office situation. List the procedure (review textbook pages 383-385 and the Internal Control Procedures document posted in the Exam Review Materials-Chapter 7) and explain how that procedure is violated in the scenario above. [10 points]

Procedure Violation 1. 2. The cash balance per bookss for Thomas Company on October 31, 2018 is $8,736.01. The following checks and receipts were recorded in the company books for the month of 2018: Cash Receipts Date 10/5 Checks Amount S 578.84 Amount SB43 86 No. Amou $372.96 17 22 e021 30 10/27 $157 00 SRO8 58 20 s967.00 10/30 $587.50 $234.15 25 s 246.03. 21 In addition, the bank statement for the month of October is presented below: ecks Tetal Aee posi Total Amount Last Statement No This Statement $10,951.01 $5,404.84 5 $9,178.36 10 $3,632.19 Checks and other debits: Deposits: No. Amount No. No. Amount Amount Amount Date 240.00 NSE 14 148.29 17 372.96 5,484.38 10/1 25.00 SC 18 708.62 24 921.30 843.86 10/8 19 157.00 25 246.03 941.54 10/23 21 234.15 22 578.84 808.58 10/29 10/31 1,100.00 BC Symbols: NSF (Not sufficient funds) SC (Service charge) BC (Bank Collection) for a payment on account. The NSF check was $708. Check No. 8 was correctly written f collection ofa note receivable, which includes interest of ee le. The Bank Collection is for the The bank side of the September bank reconciliation had a deposit-in-transit for $5,484.38 and an outstanding check, # 14 for $148.29. Instructions: [15 points] Prepare a bank reconciliation (a) Prepare the adjusting journal entries required by the bank reconciliation. (b) October 31 in good form. I recommend that you draw yourself a cash ledger t-account and post your adjusting entries to be sure you achieve the desired ending cash balance as we do in the recorded lecture