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

The last custodian of the petty cash fund was hospitalized and you have been asked to take stock of the fund and replenish it.When you receive the fund,it has $299 in cash and receipts as follows: The petty cash fund was established to have $800 in it. Based on what you have found,what journal entry should be recorded to replenish the fund?

The sum of the money on hand and petty cash receipts in a petty cash fund will always be equal to the balance in the Petty Cash account.

A $100 petty cash fund contains $91 in petty cash receipts,and $4.75 in currency and coins.The journal entry to record the replenishment of the fund would include a

A bank statement

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.

Meredith Company gathered the following reconciling information in preparing its May bank reconciliation:

Journalize the entries to record the following: Jun 1 Established a petty cash fund of $200 Jun 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;miscellaneous $20. Record any discrepancy in the cash short and over account. Journal

The cash account for Santiago Co.on May 31,2014 indicated a balance of $20,915.The March bank statement indicated an ending balance of $25,645.Comparing the bank statement,the canceled checks,and the accompanying memos with the records revealed the following reconciling items: Prepare a bank reconciliation as of May 31,2014.Journalize the necessary entries. Santiago Co. Bank Reconciliation May 31,2014 Journal

When a firm uses internal auditors,it is adhering to which one of the following internal control elements?

Thompson Company developed the following reconciling information in preparing its October bank reconciliation: Using the above information,determine the cash balance per books (before adjustments)for the Thompson Company.

Internal control does not consist of policies and procedures that

Consider the cash account below. Additional Information: cash disbursements were 80% of collections. How much was the Beginning Balance of the Cash Account?

Distinguish preventive controls from detective controls and give examples of each as they relate to cash.

The amount of deposits in transit is included on the bank reconciliation as a(n)

A necessary element of internal control is