Complete the following questions related to chapter 6.

1. The following information is available for Birch Company at December 31: Money market fund balance $2,790

Certificate of deposit maturing June 30 of next year $10,000

Postdate checks from customers $1,475

Cash in bank account $21,430

NSF checks from customers returned by bank $650

Cash in petty cash fund $200

Inventory of postage stamps $24

U.S Treasury bill purchased on December 15 and

maturing on February 28 of the following year $5,000

Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:

2. At the end of the day, the cash register tape shows $1,020 in cash sales but the count of cash in the register is $1,035. The proper entry to account for this excess is:

3. Ferguson Co. decides to establish a petty cash fund with a beginning balance of $200. The company decides that any purchase under $25 can be processed through petty cash instead of the voucher system. The journal entry to record establishing the account is:

4. In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles the following information:

Cash balance per company books on April 30 $6,275

Deposits in transit at month-end $1,300

Outstanding checks at month-end $620

Bank charges for printing new checks $45

Note receivable and interest collected by bank on Donahue's behalf $770

A check paid to Donahue during the month by a customer is

returned by the bank as NSF $480

5. Define an internal control system and describe its purpose.