Name: Student ID: Section: Question 1 (5 marks) L ACCT1198-Assignment 2 Take-home) Below is the bank statement information about Tina's Day Care as on April 30, Year 1. Cash balance per bank, April 30, Year 1 Outstanding checks, April 30, Year 1 Deposit in transit, April 30, Year 1 Cash balance per general ledger, April 30, Year 1 NSF check (from a customer for a payment on account) returned by bank April interest earned per bank statement $5,586 5,055 1,816 750 450 15 The supervisor sends the stamped bank deposit slip and daily cash summary to the accountant, who compares them before preparing a journal entry debiting Cash and crediting Locker Rental Revenue. Required: 1. For each statement (a)-(f), identify the internal control principle being applied. Question 3 (2 marks) What are the limitations of internal control? Explain each one of them. Check no. 800 in payment of accounts payable cleared the bank for $1,100, but was erroneously recorded in the books at $800 Deposit in amount of $6,000, recorded properly on books, erroneously credited on bank statement as $6,200 Required: Part A: Prepare a bank reconciliation as of April 30, Year 1. Part B: Prepare any journal entries required as a result of the bank reconciliation. Question 23 marks) Locker Rentals Corp. (LRC) operates locker rental services at several locations throughout the city including the airport, bus depot, shopping malls, and athletics facilities. Unlike some of the old mechanical lockers that charge a fixed amount per use, LRC's lockers operate electronically and are able to charge based on hours of use. The locker system transmits a daily message to LRC's office indicating the number of hours that lockers have been used, which the office manager uses to determine when cash should be picked up at each location. LRC cash receipts system is described below. a. Two employees (cash collection clerks") are responsible for collecting cash from the lockers. Based on instructions from the office manager, one clerk collects cash from specific locations on the west side of the city and the other collects from specific locations on the east side. b. When each cash collection clerk returns with the cash, a supervisor counts the cash and prepares a cash count sheet. e. The supervisor places the cash in a locked cashbox until it is taken to the bank for deposit. d. The supervisor, not the cash collection clerks, takes the cash to the bank for deposit. e. The supervisor prepares a duplicate deposit slip, which the bank stamps after the deposit is made to indicate the date and amount of the deposit.