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

Separating the responsibilities for purchasing,receiving,and paying for equipment is an example of the control procedure: separating operations,custody of assets,and accounting.

Pilger Corporation has cash on hand at year-end of $201,000 and a negative cash flow from operations of $144,000.What is the ratio of cash to monthly cash expenses?

The bank statement for Jeffrey Co.indicates a balance of $8,785 on October 31.After the journals for October had been posted,the cash account had a balance of $8,998. a Cash sales of $945 had been erroneously recorded in the cash receipts journal as $495. b Deposits in transit not recorded by bank,$778. c Bank debit memo for service charges,$40. d Bank credit memo for note collected by bank,$23,985 plus $885 interest. e Bank debit memo for $756 NSF not sufficient funds check from Calin Sams,a customer. f Checks outstanding,$1,860. Record the appropriate journal entries that would be necessary for Jeffrey Co.

The bank reconciles its statement to the company's records.

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

Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation.Calculate the adjusted cash balance per books on September 30.

A minimum cash balance required by a bank is called

A voucher is a written authorization to make a cash payment.

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430.This item would be included on the bank reconciliation as an

When the petty cash fund is replenished,the petty cash account is credited for the total of all expenditures made since the fund was last replenished.

A firm's internal control environment is not influenced by

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

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 Date Description Post. Ref. Debit Credit

Using the following information,prepare a bank reconciliation for Candace Co.for May 31: a The bank statement balance is $2,936. b The cash account balance is $3,194. c Outstanding checks amounted to $465. d Deposits in transit are $655. e The bank service charge is $50. f A check for $97 for supplies was recorded as $79 in the ledger.

The type of account and normal balance of Petty Cash is an

In preparing a bank reconciliation,the amount of outstanding checks is added to the balance per bank statement.

A customer's check received in settlement of an account receivable is considered cash.

Journalize the entries to record the following: March 1 Established a petty cash fund of $300. March 31 The amount of cash in the petty cash fund is now $64.The fund is replenished based on the following receipts: office supplies,$137; selling expenses,$112. Record any discrepancy in the cash short and over account. Journal Date Description Post. Ref. Debit Credit

In the normal operation of business,you receive a check from a customer and deposit it into your checking account.With your bank statement you are advised that this check for $775 is "NSF." The bank also informs you that due to the amount of activity on your business account the monthly service charge is $75.During a bank reconciliation,you will

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company.This item is an