Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 7.2 Convenient Store employees alternate working the single cash register, stocking shelves, and performing general cleaning throughout their shifts. These internet control procedures are

image text in transcribed
image text in transcribed
image text in transcribed
Exercise 7.2 "Convenient Store" employees alternate working the single cash register, stocking shelves, and performing general cleaning throughout their shifts. These internet control procedures are used in the business, 1. To minimize loss from robbery, only $100 cash is kept in the cash register. Cash over the $100 is hidden in a metal box stored in the locked office until it is deposited in the bank. 2. All sales are processed by at the register using a single cash drawer. 3. At the end of each day, total cash receipts are counted by the store manager and reconciled to the cash register total. 4. The store manager makes the bank deposit and records the day's receipts. 5. All employees and managers are experienced though not bonded. (A "bonded" employee has been THROUOUHLY investigated by a "bonding company An employer can then purchase "insurance covering theft by the bonded employee. Used when employees handle large amounts of money or jowolry, art etc.) Not to be confused with "bonded bourbon or other types of bondage ... VERY different! Instructions For each, explain the weakness in internal control. Then suggest a SPECIFIC change in procedure that will result in better internal control. (if you need more space - add it by hitting the space bar INSIDE the tables row or column.) Weakness Identified SPECIFIC Change Recommended Ex: Cash is not adequately protected from theft 1. 2 3. 3 4. 6 5. Exercise 7.3 These procedures are used in "The Boutique" for cash disbursements (payments) 1. Checks are stored in an unmarked envelope on a shelf behind the cash register. 2. The store manager approves all payments before she write. sions and sends checks FO Exercise 7.3 These procedures are used in "The Boutique" for cash disbursements (payments). 1. Checks are stored in an unmarked envelope on a shelf behind the cash register. 2. The store manager approves all payments before she write, signs and sends checks. 3. The store buys "used" items for resale. All employees may buy "resale" items by paying cash from the register. The employee documents a purchase on a piece of paper, writing the cost and description of the item - then signing the paper - and putting it in the register. 4. After paying the invoices (bills) the bookkeeper places them in the suppliers folder. 5. The bookkeeper prepares the bank deposits and cash records and reports any discrepancies directly to the owner. Instructions For each, explain the weakness in internal control. Then suggest a SPECIFIC change in procedure that will result in better interal control. (If you need more space - add it by hitting the space bar INSIDE the tables row or column.) Weakness identified SPECIFIC Change Recommended 1. 2. 2. 3. 4. . 5. Brief Exercise 7.6 The cash register tape for Bluestem Industries reported sales of $6,871.50. Record the journal entry that would be necessary for each of the following situations. (a) Sales per cash register tape exceeds cash on hand by $50.75. (b) Cash on hand exceeds cash reported by cash register tape by $28.32. Date Account Titles and Explanation Debit Credit Foc ill = III > Un pacu wa IDE U taurus TUW UI COIN Weakness Identified SPECIFIC Change Recommended 1. 2. 3. 5. Brief Exercise 7.6 The cash register tape for Bluestem Industries reported sales of $6,871.50. Record the journal entry that would be necessary for each of the following situations, (a) Sales per cash register tape exceeds cash on hand by $50.75. (b) Cash on hand exceeds cash reported by cash register tape by $28.32. Account Tities and Explanation Debit Credit Date (a) (b) (Use the account "Cash Over and Short I needed) Brief Exercise 7.7 While examining cash receipts information, the accounting department determined the following information: cash on hand $1,125.74 and cash sales per register tape $988.62. Complete the required journal entry ... start by debiting CASH.. Date Account Titles and Explanation Debt Credit (a) Exercise 7.2 "Convenient Store" employees alternate working the single cash register, stocking shelves, and performing general cleaning throughout their shifts. These internet control procedures are used in the business, 1. To minimize loss from robbery, only $100 cash is kept in the cash register. Cash over the $100 is hidden in a metal box stored in the locked office until it is deposited in the bank. 2. All sales are processed by at the register using a single cash drawer. 3. At the end of each day, total cash receipts are counted by the store manager and reconciled to the cash register total. 4. The store manager makes the bank deposit and records the day's receipts. 5. All employees and managers are experienced though not bonded. (A "bonded" employee has been THROUOUHLY investigated by a "bonding company An employer can then purchase "insurance covering theft by the bonded employee. Used when employees handle large amounts of money or jowolry, art etc.) Not to be confused with "bonded bourbon or other types of bondage ... VERY different! Instructions For each, explain the weakness in internal control. Then suggest a SPECIFIC change in procedure that will result in better internal control. (if you need more space - add it by hitting the space bar INSIDE the tables row or column.) Weakness Identified SPECIFIC Change Recommended Ex: Cash is not adequately protected from theft 1. 2 3. 3 4. 6 5. Exercise 7.3 These procedures are used in "The Boutique" for cash disbursements (payments) 1. Checks are stored in an unmarked envelope on a shelf behind the cash register. 2. The store manager approves all payments before she write. sions and sends checks FO Exercise 7.3 These procedures are used in "The Boutique" for cash disbursements (payments). 1. Checks are stored in an unmarked envelope on a shelf behind the cash register. 2. The store manager approves all payments before she write, signs and sends checks. 3. The store buys "used" items for resale. All employees may buy "resale" items by paying cash from the register. The employee documents a purchase on a piece of paper, writing the cost and description of the item - then signing the paper - and putting it in the register. 4. After paying the invoices (bills) the bookkeeper places them in the suppliers folder. 5. The bookkeeper prepares the bank deposits and cash records and reports any discrepancies directly to the owner. Instructions For each, explain the weakness in internal control. Then suggest a SPECIFIC change in procedure that will result in better interal control. (If you need more space - add it by hitting the space bar INSIDE the tables row or column.) Weakness identified SPECIFIC Change Recommended 1. 2. 2. 3. 4. . 5. Brief Exercise 7.6 The cash register tape for Bluestem Industries reported sales of $6,871.50. Record the journal entry that would be necessary for each of the following situations. (a) Sales per cash register tape exceeds cash on hand by $50.75. (b) Cash on hand exceeds cash reported by cash register tape by $28.32. Date Account Titles and Explanation Debit Credit Foc ill = III > Un pacu wa IDE U taurus TUW UI COIN Weakness Identified SPECIFIC Change Recommended 1. 2. 3. 5. Brief Exercise 7.6 The cash register tape for Bluestem Industries reported sales of $6,871.50. Record the journal entry that would be necessary for each of the following situations, (a) Sales per cash register tape exceeds cash on hand by $50.75. (b) Cash on hand exceeds cash reported by cash register tape by $28.32. Account Tities and Explanation Debit Credit Date (a) (b) (Use the account "Cash Over and Short I needed) Brief Exercise 7.7 While examining cash receipts information, the accounting department determined the following information: cash on hand $1,125.74 and cash sales per register tape $988.62. Complete the required journal entry ... start by debiting CASH.. Date Account Titles and Explanation Debt Credit (a)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing In Savings And Credit Cooperative Societies

Authors: Daniel Njuguna

1st Edition

B0C8SCJKRT, 979-8223128649

More Books

Students also viewed these Accounting questions

Question

13.4 Specification Bias

Answered: 1 week ago

Question

Demonstrate three aspects of assessing group performance?

Answered: 1 week ago