Problems P5-1 Evaluate internal control of cash The following procedures were recently complemented by Wind Rivers Clothing Co. Each cashier is assigned separate cash or to which no other cashier has access 1. All sales are ring up on the cash register and se to the customer. All sales are recorded on a record locked inside the At the end of a shift, cach she count the cash his or her cash register, unlock the cash register record, and compares the amount of all with the amount on the record to determine cash short and d. Checks received through the mail are given daily to the accounts receivable clerk for recording collections on account and for depositing in the bank Vouchers and all supporting documents are ad De being paid by the treasurer Disbursements are made from the petty cash and only therapety cash receipt has been completed and signed by the page The bank reconciliation is prepared by the con Instructions Indicate whether each of the procedures of internal como et cash represents (1) strength or ) a weakness for each weakness, indicate why baland PS-2 Bank reconciliation and entries The cash account for Deaver Coming October 31, 2016 indicated a balance of $15.750 The bank statement indicated a balance of $31,095 October 31, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records re vealed the following reconciling items 1. Check outstanding totaled $10,125 b. A depok of 1,120, representing receipts from Oceber 31, had been made too late to appear on the bank statement c. The bank had collected $10,000 mote for the face of the news $10,000 d. A check for $1,200 returned with the shade corectly recorded by Deere Coming as $120. The check was for the payment Owondote plies Co. for the purchase of office supplies e A check down for $320 had been incorrectly changed by the bank a $250 Bank service charges for October amounted to Instructions Preparebank reconciliation 2. Mustrate the effects on the account and face of reconcilio Adjusted P5-3 Bank reconciliation and entries The cash account for All American Sports Con Al. 2015, indicated a balance of $23.00. During April, the total cash deposited was $0,150, and checks written totaled $72.00. The bank statement indicated a balance of $0.0 on April 30, 2015. Comparing the bank statement, the canceled checks, and the accompanying memes with the records revealed the following reconciling items Checks outstanding totaled 1400 b. A deposit of $9.275, representing recipes of April, had been made too late to appear on the bank statement c. A check for $720 had been incorrectly charged by the bank as $270 d. A check for $110 returned with the same had been recorded by All American Sports Co as $1,100. The check was for the payment of an obligation to Garber Canaccount e. The bank had collected for All American Sports Ga H.320 note le for collection The face of the note was 14,000 Bank service charges for April mounted to $95 A check for $1.300 from Bishop Co. was returned by the bank because of insufficient funds Instructions 1. Prepare a bank reconciliations of April 30 2. Thustrate the effects on the accounts and financials of the bank reconciliation, . 1. Adjusted lance: $10.798.00 P5-4 Bank reconciliation and entries Rancho Foods deposits all cash recipes each Wednesday and Friday in a night deposi- tory, after banking hours. The data required to recome the bank statement of May 31 have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters CASH ACCOUNT Balance as of May 59.578.00 CASH RECEIPTS FOR MONTH OF MAY 55.255. DUPLICATE DEPOSIT TOETS Dute and amount of each depositi May Amount Date Amount May 2 5509.30 SSON May 23 573145 7010 16 601.50 58034 CHECKS WRITTEN Humber and art of each chey Check Amen Amount 614 5243.50 615 2. ** 195.50 1010 619 o SOLO Problems P5-1 Evaluate internal control of cash The following procedures were recently complemented by Wind Rivers Clothing Co. Each cashier is assigned separate cash or to which no other cashier has access 1. All sales are ring up on the cash register and se to the customer. All sales are recorded on a record locked inside the At the end of a shift, cach she count the cash his or her cash register, unlock the cash register record, and compares the amount of all with the amount on the record to determine cash short and d. Checks received through the mail are given daily to the accounts receivable clerk for recording collections on account and for depositing in the bank Vouchers and all supporting documents are ad De being paid by the treasurer Disbursements are made from the petty cash and only therapety cash receipt has been completed and signed by the page The bank reconciliation is prepared by the con Instructions Indicate whether each of the procedures of internal como et cash represents (1) strength or ) a weakness for each weakness, indicate why baland PS-2 Bank reconciliation and entries The cash account for Deaver Coming October 31, 2016 indicated a balance of $15.750 The bank statement indicated a balance of $31,095 October 31, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records re vealed the following reconciling items 1. Check outstanding totaled $10,125 b. A depok of 1,120, representing receipts from Oceber 31, had been made too late to appear on the bank statement c. The bank had collected $10,000 mote for the face of the news $10,000 d. A check for $1,200 returned with the shade corectly recorded by Deere Coming as $120. The check was for the payment Owondote plies Co. for the purchase of office supplies e A check down for $320 had been incorrectly changed by the bank a $250 Bank service charges for October amounted to Instructions Preparebank reconciliation 2. Mustrate the effects on the account and face of reconcilio Adjusted P5-3 Bank reconciliation and entries The cash account for All American Sports Con Al. 2015, indicated a balance of $23.00. During April, the total cash deposited was $0,150, and checks written totaled $72.00. The bank statement indicated a balance of $0.0 on April 30, 2015. Comparing the bank statement, the canceled checks, and the accompanying memes with the records revealed the following reconciling items Checks outstanding totaled 1400 b. A deposit of $9.275, representing recipes of April, had been made too late to appear on the bank statement c. A check for $720 had been incorrectly charged by the bank as $270 d. A check for $110 returned with the same had been recorded by All American Sports Co as $1,100. The check was for the payment of an obligation to Garber Canaccount e. The bank had collected for All American Sports Ga H.320 note le for collection The face of the note was 14,000 Bank service charges for April mounted to $95 A check for $1.300 from Bishop Co. was returned by the bank because of insufficient funds Instructions 1. Prepare a bank reconciliations of April 30 2. Thustrate the effects on the accounts and financials of the bank reconciliation, . 1. Adjusted lance: $10.798.00 P5-4 Bank reconciliation and entries Rancho Foods deposits all cash recipes each Wednesday and Friday in a night deposi- tory, after banking hours. The data required to recome the bank statement of May 31 have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters CASH ACCOUNT Balance as of May 59.578.00 CASH RECEIPTS FOR MONTH OF MAY 55.255. DUPLICATE DEPOSIT TOETS Dute and amount of each depositi May Amount Date Amount May 2 5509.30 SSON May 23 573145 7010 16 601.50 58034 CHECKS WRITTEN Humber and art of each chey Check Amen Amount 614 5243.50 615 2. ** 195.50 1010 619 o SOLO