Question 1 (30 minutes) The cash balance per books for Evergreen Company on November 30, 2017, is $10,740.93. The following checks and receipts were recorded for the month of December 2017: Checks Receipts No Amount No. Amount Amount Date 17 $372.96 22 $ 578.84 $ 843.86 12/5 18 780.62 23 1.687.50 941.54 12/21 19 157.00 24 921.30 808.58 12/27 20 587.50 25 246.03 1,367.00 12/31 21 234.15 In addition, the bank statement for the month of December is presented below: Balance Last Statement $5,404 84 Deposits and Credits No. Total Amount 5 $9,578,36 Checks and Debits No. Total Amount 10 $3,632.19 Balance This Statement $11,351.01 Checks and other debits Deposits Date Balance No Amount No Amount No. Amount 22 578.84 14 18 19 21 148.29 17 70862 24 157.00 25 234.15 250.00 NSF 372.96 921.30 246.03 15.00 SC 5,484.38 12/1 843.86 12/8 941.54 12/23 808.58 12/29 1,500.00 CM 12/31 $9,875.13 $9,219.03 59,541.58 $10,10101 $11,351.01 Symbols: NSF (Not sufficient funds) SC Service charge) CM (Credit Memo) Check No. 18 was correctly written for $708.62 for a payment on account. The NSF check was from 5. Gill, a customer, in settlement of an account receivable. The NSF check has not been recorded. The credit memo is for the collection of a note receivable including interest of S60 that has not been accrued. The bank service charge is $15.00 Instructions a) Prepare a bank reconciliation at December 31. (D) indicate the adjustments required by the bank reconciliation Question 2 (10 minutes) Jim Gant has worked for Dr. Ken Food for several years. Jim demonstrates a loyalty that is rare among employees. He hasn't taken a vacation in the last three years. One of Jim's primary duties at the medical office is to open the mail and list the checks received. He also takes cash from patients at the cashier window as patients leave. At times it is so hectic that Jim doesn't bother with giving patients a receipt for the cash paid on their accounts. He assures them he will see to it that they receive the proper credit. When the traffic is slow in the office Jim offers to help Lisa post the payments to the patients' accounts receivable. She is always happy to receive his help, because he is a very conscientious worker. Instructions Identify any principles of internal control that may be violated in this medical office situation