Acct 200: Chapter 7 Weekly Worksheet Remember to complete this worksheet after class as there will be questions on the Ch 7 Lecture Quiz from this document 1) What are the three factors that contribute to fraud? 2) John Johnson is concerned with internal controls over checks received from customers at Do Sporting Goods. All checks received in the mail are sent to the accounting department, where they are stamped "For Deposit Only". The accounting department records the checks and also deposits the checks weekly a. What principle of internal control is being violated? b. How could a new policy improve this internal control violation? 3) At Rainforest Caf, Jack & Jill use the same cash register drawer. a. What principle of internal control is being violated? b. How could a new policy improve this internal control violation? 4) XYZ Co. prepares customer invoices on plain blank paper. a. What principle of internal control is being violated? b. How could a new policy improve this internal control violation? 5) The employee responsible for the ABC Co's checks keeps the checks in her unlocked desk drawer. a. What principle of internal control is being violated? b. How could a new policy improve this internal control violation? 6) On July 31, 2015, Dirt Company had a cash balance per books of $9,885. The statement from Shiny Bank on that date showed a balance of $7,705. A comparison of the bank statement with the cash account revealed the following facts: The bank service charge for July was $35. The bank collected an Electronic Funds Transfer (EFT) from a customer of Dirt Company for $1,600. Company check No. 2480 issued to T. Bird, a creditor, for $483 cleared the bank in July but was incorrectly recorded by the company for $438. Checks outstanding on July 31 totaled $800. Deposits in transit on July 31 totaled $4,000. On July 31, the bank statement showed an NSF charge of $500 for a check received by the company from a customer, A. Wagner, which had been a payment on account. a. Prepare the bank reconciliation below: Cash Balance Per Books Cash Balance Per Bank Adjusted Balance: Adjusted Balance: b. Prepare the necessary journal entries that Dirt Company needs to record