Exercise 6-15

258 Chapter 6 Reporting and Analyzing Cash, Fraud, and internal Control Kiona Exercise 6-13 Adjusting entries from bank reconciliation P3 Using the information in Exercise 6-12. prepare the adjusting journal entries that Del Gato Clinie ma record as a result of preparing the bank reconciliation the pe May Exercise 6-14 Bank reconciliation P3 Wright Company's Cash account shows a $27.500 debit balance and its bank statement shows $25.80 deposit at the close of business on May 31. Prepare its bank reconciliation using the following informatika a. The May 31 bank statement lists $100 in bank service charges, the company has not yet recorded cost of these services. b. Outstanding checks as of May 31 total 55,600. C. May 31 cash receipts of $6,200 were placed in the bank's night depository after banking hounal were not recorded on the May 31 bank statement. d. In reviewing the bank statement, a $400 check written by Smith Company was mistakenly daw against Wright's account. e. The bank statement shows a $600 NSF check from a customer; the company has not yet recorded thi NSF check. Check Reconciled bal. $26,800 R Exercise 6-15 Liquid assets and accounts receivable A1 P Barga Co.'s net sales for Year 1 and Year 2 are $730,000 and $1,095,000, respectively. Its year-end buli ances of accounts receivable follow: Year 1. $65.000; and Year 2. S123,000. a. Compute its days' sales uncollected at the end of each year. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1? Exercise 6-164 Documents in a voucher system P4 Match each document in a voucher system with its description. Document Description 1. Purchase requisition A. An itemized statement of goods prepared by the vendor listing the cus 2. Purchase order tomer's name, items sold, sales prices, and terms of sale. 3. Invoice B. An internal file used to store documents and information to control cash pay 4. Receiving report ments and to ensure that a transaction is properly authorized and recorded 5. Invoice approval C. A document used to place an order with a vendor that authorizes the vendor to ship ordered merchandise at the stated price and terms. 6. Voucher D. A checklist of steps necessary for the approval of an invoice for recording and payment; also known as a check authorization E. A document used by department managers to inform the purchasing depart mant to place an order with a vendor