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

If the balance in Cash Short and Over at the end of a period is a credit, it indicates that cash shortages have exceeded cash overages for the period.

The actual cash received during the week ended June 7 for cash sales was $18,632.00, and the amount indicated by the cash register total was $18,628.00. Journalize the entry to record the cash receipts and cash sales. Journal

The type of account and normal balance of Petty Cash is a(n)

On August 3rd, Sonar Sales decides to establish a $275.00 Petty Cash Account to relieve the burden on Accounting. (a) Journalize this event. (b) On August 11th, the petty cash fund has receipts for mail and postage of $124.75, contributions and donations of $53.25, meals and entertainment of $63.85 and $32.75 in cash. Journalize the replenishment of the fund. (c) On August 12th, Sonar Sales decides to increase petty cash to $400.00. Journalize this event.

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

Which one of the following would not cause a bank to debit a company's account?

The following information is from Madison Corporation's accounting records for May 20XX. Check # 3269 was returned as a double payment and voided. Checks that have not cleared the bank include 3252, 3260, and series 3275-3278. In addition to the above list of the checks, Madison had check #2264 for $32.98 and check #2655 for $45.99 outstanding previously that have not cleared. 1. Create an outstanding checks list for Madison at the end of May 20XX. 2. What is the total amount of checks that cleared the bank (written in May)?

In preparing a bank reconciliation, the amount indicated by a debit memo for bank service charges is added to the balance per company's records.

In preparing a bank reconciliation, the amount of an error indicating the recording of a check in the journal for an amount larger than the amount of the check is added to the balance per company's records.

Using the following information, prepare a bank reconciliation for Young Co. for August 31, 2014:

A $135 petty cash fund has cash of $28 and receipts of $110. The journal entry to replenish the account would include a

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

Expenditures from a petty cash fund are documented by a petty cash receipt.

When a clerk enters a sale and the customer can see the amount displayed and is given a cash receipt, this is an example of a preventive control.

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 a(n)

An example of good internal controls over cash payments is the taking of all cash discounts offered.

Which of the following items that appeared on the bank reconciliation did not require an adjusting entry?

A check for $342 was erroneously charged by the bank as $432. In order for the bank reconciliation to balance, you must add $90 to the bank statement balance.