HW Problem 7.3 -- Note the internal control principle violated and how to correct it. a. Your Co. keeps its unnumbered checks in an unlocked desk drawer. b. The owner of Corner Store has a number of trusted employees she's known for years and with whom she attends church. Since these employees are so trustworthy, she doesn't bond them. c. Jack & Jill (two long-time employees at Merchandiser Corp.) take turns operating the cash register and helping to stock shelves. Each has a key & access code to the cash register. d. The Paradise Intermediate Parent Teacher Association (PTA) hosted a bake sale to raise money to help fund the school's music program. Students and parents baked cookies and cupcakes and dropped them off at the school auditorium. The PTA president then drove the cookies over to the Thursday night farmer's market where she sold them for a $1 each, keeping the cash receipts in a box on the table. The leftover cookies were given to the food bank. The president took the $228 from the bake sale and deposited it and then gave the deposit slip to the PTA treasurer. Tom is the secretary for Big Bucks Corp. and every day he opens the mail and pulls out the checks to give to the accountant. The accountant then prepares a deposit slip and takes them over to the bank. f Medium Company's office manager approves all purchase orders and the accountant matches the PO to invoices received and enters invoices into the accounting system. When invoices are due, the accountant generates checks for the office manager to sign. However, if there is an emergency, the accountant can sign the checks (she is also a signatory on the bank account). HW Problem 7.2 -Use the following to A) complete Your Co's bank reconciliation and B) make journal entries Your Company Account Number: 9441211 4251 Skyway WELLS Branch Number: 271 Paradise, CA 95969 FARGO Statement Date: 1/31/2017 Previous Balance 55,000.00 Checks & Debits D eposits & Credits Daily Balance Date Ck Amount Date Amount Date Amount 1/1 159 $862.55 1/1 $1,800.00 1/1 $5,937.45 1/3 162 $252.00 1/3 $5.685.45 1/7 163 $695.00 1/7 $4.990.45 1/ 9 165 $1,326.89 1/9 $5,200.00 1/9 $8.863.56 1/10 164 $2.553.25 | 1/10 $6.000.00 1/10 $12.310.31 NSE $1.200.00 1/11 $11.110.31 1/13 166 $89.42 1/13 $3,400.00 EFT 1/13 $14.420.89 1/14 167 $586.00 1/14 $13.834.89 1/16 168 $321.65 1/16 $13,513.24 1/22 170 $1,665.74 1/22 $3.200.00 1/22 $15,047.50 1/24 171 $743.25 | 1/24 $612.50 1/24 $14.916.75 1/26 172 $126.58 1/26 $14.790.17 1/27 173 $182.50 1/27 $14.607.67 175 $2,640.00 || 1/30 $682.00 1/30 $12.649.67 1/31 SC $16.00 1/31 $25.00 1/31 $12.658.67 Total $13.260,83 Total $20.919.50 Current Balance $12.658.67 vicient and E lectronic funds transfer service Charge interest Revenue 1/11 1/30 Cash Account No. 105 Balance Date Explanation Debit Credit Debit 1-Jan Beg. Bal. 5,937.45 1-Jan Ck #162 $252.00 5,685.45 5-Jan C #163 $695.00 4.990.45 7-Jan Ck #164 $2755325243720 8-Jan Ck #165 $1,32689 1,110.31 9-Jan Deposit $5,200.00 6310,31 10-Jan Deposit $6,000.00 12.310,31 12-Jan Ck 166 8974112720129 13-Jan Ck# 167 $586.00 116489 14-Jan CEB 168 1 3 21.65 11,313.24 15-Jan ca 169 1 3 ,892.00 7,421.24 16-Jan Ck 1170 1 ,665.74 5,755.50 20-Jan ck 3171 743.25 5,012.25 22-Jan Deposit 3,200.00 8,212.25 24-Jan Deposit 612.50 8.824.75 25-Jan Ck #172 126 588698117 26-Jan Ck 173 - 812.50 7,885.67 27-Jan Ck 174 . 786.32 7.099.35 27-Jan Ck8175 - 2.640.00 4,459.35 30-Jan Deposit 1682.00 5,141.35 31Jan Ck 176 412.46 4,728.89 31-Jan Deposit 2,600.00 7,328.89 a) Last month check # 159 was outstanding and there was a deposit in transit for $1.800 b) EFT was from Client Co. for work performed last month. c) Check w 173 to Creditor Co. correctly cleared the bank for $182.50, but Your Co. mistakenly deducted $812.50 HW Problem 7.1 - Journalize the following transactions for Ukos Company. May 1 Withdrew $200 cash from Ukos' checking account to establish a petty cash fund. May 15 Wrote a check to replenish petty cash fund which included $20 in cash and the following receipts. a. Lunch - $52 b. Office Supplies - $87 c. Postage - $31 d. Mileage - $ 14.50 May 25 Wrote a check to replenish petty cash fund which included $30 in cash and the following receipts. a. Postage - $32 b. Miscellaneous - $15.42 c. Mileage - $58 d. Office Supplies - $60 May 31 Wrote a check for $200 to increase the petty cash fund