Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. $3,000 cash deposit in checking account. $20,000 bond investment due in 20 years. $5,000 U.S. Treasury bill due in 1 month Exercise 6-5 Cash and cash equivalents $200, 3-year loan to an employee. $1,000 of currency and coins. C2 $500 of accounts receivable. Determine whether each cash receipts procedure is an internal control strength or weakness. 1. If a salesclerk makes an error in recording a cash sale, she can access the register's electronic record to Exercise 6-6 Control of cash receipts correct the transaction. P1 2. All sales transactions, even those for less than $1, are recorded on a cash register. 3. Two employees are tasked with opening mail that contains cash receipts. 4. One of the two employees tasked with opening mail is also the recordkeeper for the business. 5. The supervisor has access to both cash and the accounting records. 6. Receipts given to customers only for sales that are above $20. are Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows S104 in cash along with receipts for the following expenditures: transportation-in, $40; postage expenses, $123; and miscellaneous expenses, $80. The petty cashier could not account for a $3 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $400. Exercise 6-8 Petty cash fund with a shortage P2 Check (2) Cr. Cash, $246 and (3) Cr. Cash, $50 Prepare a table with the following headings for a monthly bank reconciliation dated September 30, Shown or Not Shown on Reconciliation 3/50 Exercise 6-11 Bank reconciliation and adjusting entries Book Balance Bank Balance Item P3 Shown or Not Shown Dr. or Cr Add or Subtract Add or Subtract Indicate whether each item should be added to or deducted from the book or bank balance and whether it should or should not appear on the September 30 reconciliation. For items that add or deduct from the book balance column, place a Dr. or Cr. after the "Add" or "Deduct" to show the accounting impact on Cash. 1. NSF check from a customer is shown on the bank statement but not yet recorded by the company 2. Interest earned on the September cash balance in the bank is not yet recorded by the company 3. Deposit made on September 5 and processed by the bank on 4. Checks written by another depositor but mistakenly charged against this company's account. 5. Bank service charge for September is not yet recorded by the company. 6. Checks outstanding on August 31 that cleared the bank in September. 7. Check written against the company's account and cleared by the bank; erroneously not recorded by the company's recordkeeper. 8. A note receivable is collected by the bank for the company, but it is not yet recorded by the company 9. Checks written and mailed to payees on October 2 10. Checks written by the company and mailed to payees on September 30. 11. Night deposit made on September 30 after the bank closed. 12. Bank fees for check printing are not yet recorded by the company. September 6 view the
