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Sues Required: 1. For each case, identify the principle(s) of internal control that is violated. a Separate recordkeeping from custody of assets b. Chi Han

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Sues Required: 1. For each case, identify the principle(s) of internal control that is violated. a Separate recordkeeping from custody of assets b. Chi Han receives all incoming customer cash receipts for her employer and posts the customer payments to their respective accounts To ensure the company retreat would not be cut the manager of Lavina Company decided to save money by canceling the external audit of internal controls Marker Theater has a computerized order-taking system for its tickets. The system is backed up once a year d. Tywin company keeps very poor records of its equipment. Instead, the company asserts its employees are honest and would never steal from the company c. 0 At Tico Company, Julia and Trevor attemate lunch hours. Julia is the petty cash custodian, but ! someone needs petty cash when she is at lunch, Trevor fits in as custodian Required information [The following information applies to the questions displayed below.] Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, No. 5888 for $1,099 and No: 5893 for $491 Check No. 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation From the September 30 Bank Statement PREVIOUS BALANCE TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 18. see 9,938 11,538 20,10 CHECKS AND DEBITS Date No. Amount 09/03 5888 1, e99 09/24 5902 713 09/ 5981 1,827 e9/17 544 NSF 09/20 5985 964 e9/22 5903 439 e9/22 5984 2,138 DEPOSITS AND CREDITS Date Amount 29/es 1,145 09/12 2,267 09/21 4, 278 09/25 2,325 e9/30 13 IN 09/30 1,51 CH 5903 09/30 1,510 CM 89/22 e9/22 09/28 09/29 5904 5907 5909 439 2,138 238 1,876 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,145 12 2,267 21 4,278 25 2,325 3e 1,730 11,745 Cash Payments Cash Check No. Credit 5981 1,827 5902 713 5983 439 5984 2,897 SOAS 054 Cash Payments Cash Check No. Credit 5901 1,827 5902 713 5903 439 2, e97 5905 964 5906 1,046 5907 238 5988 406 5909 1,876 9,606 5964 PR Debit Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 3e Total payments Acct. No. 101 Balance 16,910 28,655 19, e49 R12 D23 11,745 9,606 Additional Information 2 (a) Check No. 5904 is correctly drawn for $2,138 to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $2.097 (b) The NSF check shown in the statement was originally received from a customer, S. Nilson, in payment of her account. Its return has not yet been recorded by the company (c) The credit memorandum (CM) is from the collection of a $1,510 note for Chavez Company by the bank. The collection is not yet recorded. Required: 1. Prepare the September 30 bank reconciliation for this company CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Add: Bank statement balance Add: Required information CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Bank statement balance Add: Add 0 0 0 0 Deduct: Deduct 0 Adjusted bank balance OO $ 0 Adjusted book balance $

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