A company had the following transactions during January: \[\begin{array} { | l | l | } \hline \text { Jan. } 2 & \text { Purchased merchandise, invoice price of } \$ 16,000 , \text { with terms } 2 / 10 , \mathrm { n } / 30 \\ \hline 4& \begin{array} { l } \text { Received a credit memorandum for } \$ 4,000 , \text { the invoice price on } \\ \text { merchandise returned from the purchase of January } 2 . \end{array} \\ \hline 12 & \text { Purchased merchandise, invoice price of } \$ 15,000 , \text { with terms } 3 / 15 , \mathrm { n } / 30 \\ \hline 26 & \text { Paid for the merchandise purchased on January } 12 \\ \hline 30 & \text { Paid for the merchandise purchased on January } 2 . \\ \hline \end{array}\] Using the net method of recording purchases,prepare the journal entries to record these January transactions.

The answer of A company had the following transactions during...

Easton Co.deposits all cash receipts on the day they are received and makes all cash payments by check.At the close of business on June 30,its Cash account shows a debit balance of $60,209.Easton's June bank statement shows $58,349 on deposit in the bank.Determine the adjusted cash balance using the following information: \[\begin{array} { | l | r | } \hline \text { Deposit in transit } & \$ 3,800 \\ \hline \text { Outstanding checks } & \$ 1,925 \\ \hline \text { Check printing fee, not yet recorded by company } & \$ 15 \\ \hline \text { Interest earned on account, not yet recorded by the company } & \$ 30 \\ \hline \end{array}\] The adjusted cash balance should be:

A) $60,194 B) $60,239 C) $62,149 D) $56,424 E) $60,224 A) $60,194 B) $60,239 C) $62,149 D) $56,424 E) $60,224

A) Include savings accounts. B) Include checking accounts. C) Are readily converted to a known cash amount. D) Include time deposits. E) Have no immediate value. A) Include savings accounts. B) Include checking accounts. C) Are readily converted to a known cash amount. D) Include time deposits. E) Have no immediate value.

Exam 6: Cash, fraud, and Internal Controls

At the end of the day on March 15,the cash register's record shows $1,957,but the count of cash in the register is $1,965.Prepare the general journal entry to record the day's cash sales.

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Question 61

Outstanding checks,deposits in transit,deductions for bank fees,additions for interest,and errors are all factors that can cause the bank statement balance for a checking account to be different from the company's checking account balance.

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Question 62

A seller (or provider)of goods or services to a business organization is known as a:

(Multiple Choice)

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Question 63

Match each of the following terms with the appropriate definitions. -An income statement account used to record the income effects of cash overages and cash shortages arising from missing petty cash receipts or errors in making change.

(Multiple Choice)

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Question 64

A voucher is an internal document or file:

(Multiple Choice)

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Question 65

The number of days' sales uncollected:

(Multiple Choice)

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Question 66

A company had the following transactions during January: Jan. 2 Purchased merchandise, invoice price of \ 16,000, with terms 2/10,/30 4 Received a credit memorandum for \ 4,000, the invoice price on merchandise returned from the purchase of January 2. 12 Purchased merchandise, invoice price of \ 15,000, with terms 3/15,/30 26 Paid for the merchandise purchased on January 12 30 Paid for the merchandise purchased on January 2. Using the net method of recording purchases,prepare the journal entries to record these January transactions.

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Question 67

Gardener Company had the following transactions during January: Using the net method of recording purchases,prepare the journal entries to record these January transactions.

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Question 68

Easton Co.deposits all cash receipts on the day they are received and makes all cash payments by check.At the close of business on June 30,its Cash account shows a debit balance of $60,209.Easton's June bank statement shows $58,349 on deposit in the bank.Determine the adjusted cash balance using the following information: Deposit in transit \ 3,800 Outstanding checks \ 1,925 Check printing fee, not yet recorded by company \ 15 Interest earned on account, not yet recorded by the company \ 30 The adjusted cash balance should be:

(Multiple Choice)

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Question 69

Approved vouchers are recorded in a journal called the voucher register.

(True/False)

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Question 70

The following information is available to reconcile Hinckley Company's book balance of cash with its bank statement cash balance as of June 30.The June 30 cash balance according to the accounting records is $57,542,and the bank statement cash balance for that date is $67,047. a.The bank erroneously cleared a $295 check against the account in June that was not issued by Hinckley.The check documentation included with the bank statement indicates the check was actually issued by Dancer Co. b.On June 30,the bank issued a credit memorandum for $35 interest earned on Hinckley's account. c.When the June checks are compared with entries in the accounting records,it is found that Check No.1727 had been correctly drawn for $1,450 to pay for advertising but was erroneously entered in the accounting records as $1,540. d.A credit memorandum indicates that the bank collected $9,000 cash on a note receivable for Hinckley,deducted a $30 collection fee,and credited the balance to the company's Cash account.Hinckley did not record this transaction before receiving the statement. e.A debit memorandum of $865 is enclosed with the bank statement for an NSF check for $840 received from a customer.The bank assessed a $25 fee for processing it. f.Hinckley's June 30 daily cash receipts of $6,425 were placed in the bank's night depository on that date,but do not appear on the June 30 bank statement. g.Hinckley's June 30 cash disbursements journal indicates that Check No.1737 for $4,830 and Check No.1740 for $3,280 were both written and entered in the accounting records,but are not among the canceled checks. h.A debit memorandum for $115.00 indicates the bank deducted the annual lock box fee for the company. 1.Prepare the bank reconciliation for this company as of June 30. 2.Prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of June 30.

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Question 71

The payee is the person who signs a check,authorizing its payment.

(True/False)

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Question 72

Since petty cash is concerned with such small amounts of cash,it is not necessary to document all transactions with a petty cash receipt.

(True/False)

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Question 73

For each of the independent cases below,identify the principle of internal control that is violated,and recommend what should be done to remedy the violation. 1.In order to save money,Indigo Company has decided to drop its property insurance on assets; and stop bonding the cashiers who handle upwards of $5,000 in cash each day. 2.Jobs Company records each sale on a preprinted invoice.Because invoices are sometimes damaged in the process of preparation,the invoices are not prenumbered.Instead,the sales clerk writes the next number on each invoice as it is prepared. 3.Keegan Company is a very small business.Dylan Epps,one of the two office clerks,opens the mail each day and removes the cash receipts that come in the mail.Dylan also records the receipts in the cash records and the customer's account and deposits the cash in the bank. 4.Ludwig Company prides itself on hiring only the most competent employees.The owner,Jeremy Ludwig,believes that since the employees are highly competent he can show he trusts them completely by not checking up on their performance. 5.Maple Industries is a small business with three accounting employees.Each employee is well-trained and able to perform any of the accounting tasks,including handling cash receipts and cash disbursements,and preparing the bank reconciliation.Because of this cross-training,the employees share responsibilities for all of the tasks.

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Question 74

Because employees know that bonding is an insurance policy against loss from theft,bonding does not generally discourage loss from theft.

(True/False)

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Question 75

Technologically advanced accounting systems rarely need monitoring for errors because computers always process transactions correctly.

(True/False)

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Question 76

A receiving report is a document used within a company to notify the appropriate persons that ordered goods have been received and to describe the quantities and condition of the goods.

(True/False)

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Question 77

Cash equivalents:

(Multiple Choice)

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Question 78

Freeman Co.had net sales of $4.2 million and ending accounts receivable of $0.8 million.Its days' sales uncollected equals:

(Multiple Choice)

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Question 79

All of the following are true of the number of days' sales uncollected ratio except:

(Multiple Choice)

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Question 80

Showing 61 - 80 of 230

At the end of the day on March 15,the cash register's record shows $1,957,but the count of cash in the register is $1,965.Prepare the general journal entry to record the day's cash sales.

Outstanding checks,deposits in transit,deductions for bank fees,additions for interest,and errors are all factors that can cause the bank statement balance for a checking account to be different from the company's checking account balance.

A seller (or provider)of goods or services to a business organization is known as a:

Match each of the following terms with the appropriate definitions. -An income statement account used to record the income effects of cash overages and cash shortages arising from missing petty cash receipts or errors in making change.

A voucher is an internal document or file:

The number of days' sales uncollected:

Gardener Company had the following transactions during January: Using the net method of recording purchases,prepare the journal entries to record these January transactions.

Approved vouchers are recorded in a journal called the voucher register.

The payee is the person who signs a check,authorizing its payment.

Since petty cash is concerned with such small amounts of cash,it is not necessary to document all transactions with a petty cash receipt.

Because employees know that bonding is an insurance policy against loss from theft,bonding does not generally discourage loss from theft.

Technologically advanced accounting systems rarely need monitoring for errors because computers always process transactions correctly.

A receiving report is a document used within a company to notify the appropriate persons that ordered goods have been received and to describe the quantities and condition of the goods.

Cash equivalents:

Freeman Co.had net sales of $4.2 million and ending accounts receivable of $0.8 million.Its days' sales uncollected equals:

All of the following are true of the number of days' sales uncollected ratio except:

Accounting in Business

Analyzing for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Investments

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