Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QS 8-4 Internal control for cash P1 Identify each of the following statements as either true or false. a. A guideline for safeguarding cash is

image text in transcribed
image text in transcribed
QS 8-4 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 8-5 Record the journal entry for Sales and for Cash Over and Short for each of the following separate situations. Cash Over and Short a. The cash register's record shows $420 of cash sales, but the count of cash in the register is $430. P1 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 QS 8-6 $28 and had the following receipts: entertainment, $70; postage, $30; and printing, $22. Prepare jour. Petty cash accounting nal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the P2 current period. 2. Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry a. Fund amount is being reduced. c. Fund is being eliminated. b. Fund amount is being increased. d. Fund is being established. For a through g, indicate whether its amount (1) affects the bank or book side of a bank reconciliation, (2) is an addition or a subtraction in a bank reconciliation, and (3) requires an adjusting journal entry. QS 8-7 Bank reconciliation P3 Bank or Book Side Add or Subtract Adj. Entry or Not a. Interest on cash balance... b. Bank service charges.. c. Minimum balance bank fee d. Outstanding checks e. Collection of note by bank... NSF checks 0 Outstanding deposits QS 8-8 Bank reconciliation P3 Nolan Company's Cash account shows a $22,352 debit balance and its bank statement shows $21,332 on deposit at the close of business on June 30. Prepare a bank reconciliation using the following information a. Outstanding checks as of June 30 total $3,713. b. The June 30 bank statement lists $41 in bank service charges; the company has not yet recorded the cost of these services. [continued on next page]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

New Auditors Guide To Internal Auditing

Authors: Bruce R. Turner

1st Edition

1634540549, 978-1634540544

More Books

Students also viewed these Accounting questions