Exam 6: Banking Procedure and Control of Cash

The drawee is the:

On a bank reconciliation,deposits added to the bank side are called:

A company would use a change fund if:

The bank added another company's deposit to our account.This would be included on the bank reconciliation as a(n):

The May bank statement for Accounting Services shows a balance of $6300,but the balance per books shows a cash balance of $7,980.Other information includes: 1)A check for $200 to pay the electric bill was recorded on the books as $20. 2)Included on the bank statement was a note collected by the bank for $400 plus interest of $30. 3)Checks outstanding totaled $260. 4)Bank service charges were $50. 5)Deposits in transit were $2,140. -According to the above Scenario.Which item should be added to the company's book balance during the bank reconciliation?

Any adjustment to the depositor's records because of an item on the bank statement requires a journal entry.

Determine the cash short (-)or over (+)given the following: The balance per the Petty Cash account $75 The count of coin and currency amounts to $27 There are receipts: for gas of $9,for office supplies of $18,for first aid supplies $14 $ ________

The entry to replenish a $300 petty cash fund,which has cash of $140 and valid receipts for $148,would include:

The drawer writes the check.

Indicate which effect(s)each situation will have: 1.New check written 2.Recorded in the general journal 3.Recorded in auxiliary petty cash record 4.Petty cash voucher prepared -________ Bought a book of stamps

The replenishment of the petty cash fund was recorded twice.This would cause:

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). Example: Column 1 Column 2 Column 3 Column 4 Cash Asset Debit Balance Sheet Permanent - Column 1 Column 2 Column 3 Column 4 Cash Short \& Over

A $50 petty cash fund has cash of $20 and valid receipts for $40.The entry to replenish the fund would include a:

Transferring money without paper checks is called electronic funds transfer.

If the written amount on the check does not match the amount expressed in figures,the bank may:

Indicate which adjustments would require a journal entry during the completion of the bank reconciliation.Place an "X" on the respective line(s). ________ a.Deposit in transit ________ b.Bank service charge ________ c.NSF check ________ d.Check written for $58 recorded on the company's ledger as $85 ________ e.Outstanding checks ________ f.Check written for $42 recorded as $4 ________ g.Check printing charge ________ h.Note collected by bank.

The bank statement shows:

One internal control safeguard is to assign all the duties of receiving,depositing,and recording cash to one employee.

If the owner of Que Legal Services forgot to deduct a withdrawal from the balance per books,what entry would be necessary?

The May bank statement for Accounting Services shows a balance of $6,300,but the balance per books shows a cash balance of $7,980.Other information includes: 1)A check for $200 to pay the electric bill was recorded on the books as $20. 2)Included on the bank statement was a note collected by the bank for $400 plus interest of $30. 3)Checks outstanding totaled $260. 4)Bank service charges were $50. 5)Deposits in transit were $2,140. -According to the above Scenario.Which item(s)should be subtracted from the balance per books?