Hi Shelly,

I have another question for you!? Are you able to provide the answer to the attached? Thank you!

Problems: Set A P7-1A Identify internal control activities related to cash payments. (LO 1, 2) C Seegall Supply Company recently changed its system of internal control over its purchasing operations and cash payments to make the system more efficient. One employee is now responsible for both purchasing and receiving. For each purchase, that individual matches the purchase order with the receiving report and the supplier's invoice. The invoice is approved for payment by this individual and sent to the accounting department. All cheques are pre-numbered and kept in a safe in the controller's office. The combination to the safe is known only by the controller, his assistant, and the company owner. Since the bank has never made a mistake with the account, the cheque numbers are not tracked. The controller prepares all of the cheques and all of the journal entries. All cheques must be signed by the company owner, Stephanie Seegall. After the owner has signed the cheque, the controller stamps the invoice paid and has his assistant file the invoice and post the journal entry. Whenever the owner is going to be away for several days, she will leave signed blank cheques in the safe for the controller. The controller prepares the monthly bank reconciliation. Every month he finds at least three cheques that have cleared the bank but have not been recorded by the company. These cheques are always properly signed by the owner. When the controller first started working for the company, he would ask the owner about the cheques. These cheques were always for the owner's personal expenses, so now he always records these cheques as owner's drawings when doing the bank reconciliation. Instructions (a) Identify the control weaknesses over cash payments. (b) What changes should be made to improve the internal control over cash payments? P7-7A Prepare bank reconciliation and related entries. (LO 4) AP On October 31, 2017, Lisik Company had a cash balance per books of $8,946. The bank statement on that date showed a balance of $10,155. A comparison of the statement with the Cash account revealed the following: 1.The statement included debit memos of $35 for the printing of additional company cheques and $30 for bank service charges. 2.Cash sales of $417 on October 12 were deposited in the bank. The journal entry to record the cash receipt and the deposit slip were incorrectly made out and recorded by Lisik as $741. The bank detected the error on the deposit slip and credited Lisik Company for the correct amount. 3.The September 30 deposit of $985 was included on the October bank statement. The deposit had been placed in the bank's night deposit vault on September 30. 4.The October 31 deposit of $960 was not included on the October bank statement. The deposit had been placed in the bank's night deposit vault on October 31. 5.Cheques #1006 for $415 and #1072 for $975 were outstanding on September 30. Of these, #1072 cleared the bank in October. All the cheques written in October except for #1278 for $555, #1284 for $646, and #1285 for $315 had cleared the bank by October 31. 6.On October 18, the company issued cheque #1181 for $457 to Helms & Co., on account. The cheque, which cleared the bank in October, was incorrectly journalized and posted by Lisik Company for $574. 7.A review of the bank statement revealed that Lisik Company received electronic payments from customers on account of $1,875 in October. The bank had also credited the account with $25 of interest revenue on October 31. Lisik had no previous notice of these amounts. 8.Included with the cancelled cheques was a cheque issued by Lasik Company for $585 that was incorrectly charged to Lisik Company by the bank. 9.On October 31, the bank statement showed an NSF charge of $805 for a cheque issued by W. Hoad, a customer, to Lisik Company on account. This amount included a $16 service charge by the bank. The company's policy is to pass on all NSF fees to the customer. Instructions (a) Prepare the bank reconciliation at October 31. (b) Prepare the necessary adjusting entries at October 31. P7-7A Prepare bank reconciliation and related entries. (LO 4) AP On October 31, 2017, Lisik Company had a cash balance per books of $8,946. The bank statement on that date showed a balance of $10,155. A comparison of the statement with the Cash account revealed the following: 1.The statement included debit memos of $35 for the printing of additional company cheques and $30 for bank service charges. 2.Cash sales of $417 on October 12 were deposited in the bank. The journal entry to record the cash receipt and the deposit slip were incorrectly made out and recorded by Lisik as $741. The bank detected the error on the deposit slip and credited Lisik Company for the correct amount. 3.The September 30 deposit of $985 was included on the October bank statement. The deposit had been placed in the bank's night deposit vault on September 30. 4.The October 31 deposit of $960 was not included on the October bank statement. The deposit had been placed in the bank's night deposit vault on October 31. 5.Cheques #1006 for $415 and #1072 for $975 were outstanding on September 30. Of these, #1072 cleared the bank in October. All the cheques written in October except for #1278 for $555, #1284 for $646, and #1285 for $315 had cleared the bank by October 31. 6.On October 18, the company issued cheque #1181 for $457 to Helms & Co., on account. The cheque, which cleared the bank in October, was incorrectly journalized and posted by Lisik Company for $574. 7.A review of the bank statement revealed that Lisik Company received electronic payments from customers on account of $1,875 in October. The bank had also credited the account with $25 of interest revenue on October 31. Lisik had no previous notice of these amounts. 8.Included with the cancelled cheques was a cheque issued by Lasik Company for $585 that was incorrectly charged to Lisik Company by the bank. 9.On October 31, the bank statement showed an NSF charge of $805 for a cheque issued by W. Hoad, a customer, to Lisik Company on account. This amount included a $16 service charge by the bank. The company's policy is to pass on all NSF fees to the customer. Instructions (a) Prepare the bank reconciliation at October 31. (b) Prepare the necessary adjusting entries at October 31