Questions

Answer all the questions

This examination is worth 60% of your final mark.

5 questions - 100 marks

Question 1 - [16 MARKS]

Beacon Enterprises established a $150 petty cash fund with Elly as the petty cashier. When the fund balance reached $19 cash, Elly prepared a petty cash payment report, as follows.

Receipt No.

Account charged

Amount $

Approved by

Received by

120

Delivery expense

29

Elly

Simon

130

Merchandise inventory

18

Elly

Daniella

150

Omitted

32

Elly

Carl

160

Miscellaneous expenses

41

Ommited

Winter

Total

120

Required:

Part A: Identify four internal control weaknesses from the payment report- [8 marks]

Type answer here.

Part B: Prepare journal entries to record establishment of the petty cash fund - [2 marks]

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Part C: Prepare general journal entries to record reimbursement of the fund. For this part only, assume that petty cash receipt number 150 was issued for miscellaneous expenses. - [5 marks]

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Part D: What is the petty cash balance immediately before reimbursement?

What is the petty cash balance immediately after reimbursement? - [1 mark]

Type answer here.