Exam 7: Sarbanes-Oxley, Internal Control, and Cash

Jamison Company gathered the following reconciling information in preparing its June bank reconciliation: Cash balance per bank, 6/30 Note receivable collected by bank Outstanding checks Deposits-in-transit Bank service charge NSF check Using the above information, determine the cash balance per books before adjustments) for the Jamison Company.

The following items may appear on a bank statement: 1. NSF check 2. EFT deposit 3. Service charge 4. Bank correction of an error from recording a $300 check as $30. Indicate whether the item would appear as debit or credit memo on the bank statement and whether the item would increase or decrease the balance of your account. Use the following format:

If an adjustment for an NSF check is made in a company's bank reconciliation, then the company must have written a bad check during the month.

A $200 petty cash fund has cash of $20 and receipts of $177. The journal entry to replenish the account would include a credit to

Which one of the following is not a factor that influences a business's control environment?

Money orders are considered cash.

A voucher is usually supported by

Journalize the entries to record the following: June 1 Established a petty cash fund of $200. 30 The amount of cash in the petty cash fund is now $57. The fund is replenished based on the following receipts: postage, $25; entertainment, $100; and miscellaneous, $20. Journal

A special form on which is recorded pertinent data about a liability and the particulars of its payment is called an)

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -EFT deposit from a customer

a) Where are cash equivalents disclosed in the financial statements? b) List three examples of cash equivalents.

Money market accounts, commercial paper, and U. S. Treasury bills are examples of cash equivalents.

The debit recorded in the journal to reimburse the petty cash fund is to

The actual cash received during the week ended June 6 for cash sales was $8,276 and the amount indicated by the cash register total was $8,262. Journalize the entry to record the cash receipts and cash sales.

Most companies who have several bank accounts, petty cash, and cash on hand, would list each separately on the balance sheet.

List the principal advantages of electronic funds transfers.

A voucher is a form on which is recorded pertinent data about a liability and the particulars of its payment.

A check outstanding for two consecutive months will appear only on the first month's bank reconciliation.

During the year, Tempo Inc. has monthly cash expenses of $115,000. On December 31, its cash balance is $1,437,500. The ratio of cash to monthly cash expenses is

Identify each of the following reconciling items as a) an addition to the cash balance according to the bank statement, b) deduction from the cash balance according to the bank statement, c) an addition to the cash balance according to the company's records, or d) a deduction from the cash balance according to the company's records. Assume that none of the transactions reported by bank debit and credit memos have been recorded by the company. Also, indicate by writing "entry" by those items that will require a journal entry in the company's accounts. 1. Deposits in transit. 2. Bank service charges. 3. NSF check. 4. Outstanding checks. 5. Check for $690 incorrectly recorded by the company as $960. 6. Check for $420 incorrectly recorded by the company as $240.