1Rosas Pizza operates strictly on a carryout basis. Customers pick up their orders at a counter where
Question:
1Rosas Pizza operates strictly on a carryout basis. Customers pick up their orders at a counter where a clerk exchanges the pizza for cash. While at the counter, the customer can see other employees making the pizzas and the large ovens in which the pizzas are baked. Identify the six principles of internal control and give an example of each principle that you might observe when picking up your pizza. (Note: It may not be possible to observe all the principles.)
2.
Oct. 1 | A petty cash fund is established with a check for $147 issued to the petty cash custodian. |
31 | A check was written to reimburse the fund and increase the fund to $197. A count of the petty cash fund disclosed the following items: |
Currency | $59.00 |
Coins | 2.06 |
Expenditure receipts (vouchers): | |
Supplies | $24.74 |
Telephone, Internet, and fax | 15.04 |
Postage | 38.34 |
Freight-Out | 5.44 |
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Enright Company expects to have a cash balance of $56,840on January 1, 2014. These are the relevant monthly budget data for the first two months of 2014.
Prepare a cash budget for January and February.
At December 31, 2014, the trial balance of Sloane Company contained the following amounts before adjustment.
Reynolds.com uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end.
Assume the unadjusted balance in Allowance for Doubtful Accounts is a $4,000 debit. (e) Reynolds.com used 3% of total accounts receivable, rather than aging the accounts receivable. Comment on your results. What are the advantages to the company of aging the accounts receivable rather than applying a percentage to total accounts receivable?
These are selected 2014 transactions for Amarista Corporation:
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