QS 6-7

1. The 2. The term 3. The to a known cash amount and sufficiently close to their due dates so that their market value greatly change. category includes cu refers to a company's ability to pay for its current liabilities. category includes short-term, highly liquid investment assets that are readily.com QS 6-5 Reporting cash and cash equivalents C2 om de Cookies combines cash and cash equivalents on the balance sheet. Using the following info tion, $100 in coins held in store registers $4.000 cash in checking accounts $600 in accounts payable to suppliers $1,700 worth of equipment $1.000 cash in a safe at the store $5,000 note receivable due in 10 years QS 6-6 Control of cash C2 Determine whether each procedure described below is an internal control strength or weakness. 1. The same employee is in charge of recordkeeping and depositing cash receipts. 2. All large payments are made by electronic funds transfer (EFT). 3. Cash receipts of large amounts are kept in an office drawer and deposited every six months. OS 6-7 Internal control for cash P1 Identify each of the following statements as either true or false. a. A guideline for safeguarding cash is that all cash receipts be deposited monthly or yearly. b. A voucher system of control is a control system exclusively for cash receipts. c. A guideline for safeguarding cash is to separate the duties of those who have custody of cash from those who keep cash records. d. Separation of duties eliminates the possibility of collusion to steal an asset and hide the theft from the records. QS 6-8 Cash Over and Short P1 QS 6-9 Petty cash accounting P2 Record the journal entry for Sales and for Cash Over and Short for each of the following separate situation a. The cash register's record shows $420 of cash sales, but the count of cash in the register is 5430. b. The cash register's record shows $980 of cash sales, but the count of cash in the register is $972. 1. Brooks Agency set up a petty cash fund for $150. At the end of the current period, the fund contained $28 and had the following receipts: entertainment. $70; postage. $30; and printing, $22. Prepare joc nal entries to record (a) establishment of the fund and (b) reimbursement of the current period