The following items appeared on Sew Safe's bank reconciliation statement: 1. Bank error: The recording of a deposit for $ 377 should have been $ 773 2. Bank debit memo for service charge 3. Outstanding cheques 4. Outstanding cheques from the previous month that are still outstanding 5. Bank collection of a note receivable on Sew Safe's behalf 6. Deposits in transit for the current month 7. Bank credit memo for interest earned on Sew Safe's bank balance 8. NSF cheques 9. Book error: Sew Safe credited cash for $ 5,000. The correct credit was $ 500. 10. Bank error: The bank decreased Sew Safe's bank account for a cheque written by another bank customer. Required: A. Use the following numerals to classify each item: a. An addition to the book balance b. A subtraction from the book balance c. An addition to the bank balance d. A subtraction from the bank balance B. Indicate the items that will result in an adjustment to the company's records; indicate why the other items do not require an adjustment.Identify the internal control procedures that were overlooked in the following situations, If writing "other controls" is applicable, justify your position. 1. A charity golf tournament is held every year to raise funds. The charity raises over $ 15,000 a year. The organizer's 16-year-old son is hired to sell tickets, and he also handles the cash collected. 2. Ice Cream Gallery deposited cash in the bank several times throughout the day. Ice Cream Gallery's supervisor wanted to decrease the time that the employees spent going to the bank to deposit the cash. Consequently, the supervisor began a new schedule, whereby the cash was kept at Ice Cream Gallery, and all of the cash was deposited only once a week, on Monday. 3. During your audit of a business, you disclose that the same employee who ordered merchandise also approved the invoices for payment. 4. Fast Football Club's bookkeeper was elected for a fifth term to run all the financial matters of the club. Excellent internal controls were in place, since the president and secretary had signing authority. 5. The local corner store had the same trusted employee serve as cashier for over 15 years. 6. At one department store, the manager was determined to cut down paperwork. The receiving department employee would no longer prepare a receiving report, which summarized the amounts of items received from the supplier. 7. Business was slow at the local theatre on Wednesday and Thursday nights. To slash costs, the proprietor decided not to use a ticket taker on those nights. The cashier who sold the tickets was told to hold onto the tickets, as those tickets represented the number of tickets sold.Busy Bulldozing created a petty cash fund with an imprest balance of $ 420 on November 01. The fund custodian authorized the following petty cash tickets in November: Ticket # Item Amount 501 Staff Barbeque $ 150 502 Cab fare for staff're barbecue 80 503 Office Supplies 30 504 Delivery of Parcel 20 505 Office Supplies 60 On November 30, prior to replenishment, the fund contained the above tickets plus $ 50.00. The accounts affected by the petty cash payments were Entertainment Expense, Travel Expense, Office Supplies, and Delivery Expense. Required: A. Explain the characteristics and internal control of an imprest fund. B. On November 30, how much cash should the petty cash fund hold before it is refilled? C. Record journal entries to the following. Be sure to include explanations. 1. Create the fund 2. Refill the fund D. Record the December 01 journal entry to increase the petty cash fund balance to $ 600. Provide an explanation, and, in a few words, discuss what the custodian did in this case
