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

Thompson Company developed the following reconciling information in preparing its October bank reconciliation: \ 17,000 Cash balance per bank, 10/31 4,800 Note receivable collected by bank 6,500 Outstanding checks 3,000 Deposits-in-transit 50 Bank service charge 2,300 NSF check Using the above information, determine the cash balance per books (before adjustments) for the Thompson Company.

Which one of the following below is not a factor that influences a business's control environment?

The following items may appear on a bank statement: Indicate whether the item would appear as debit or credit memo on the bank statement and whether the item would increase or decrease the balance of your account. Use the following format:

For strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees.

Internal control does not consist of policies and procedures that

Journalize the following petty cash transactions. (a) On April 3rd, Snappy Sales decides to establish a $135.00 petty cash account to relieve the burden on accounting. (b) On April 11th, the petty cash fund has receipts for mail and postage of $32.75, contributions and donations of $25.25, meals and entertainment of $68.00 and $9.75 in cash. Journalize the replenishment of the fund. (c) On April 12th, Snappy Sales decides to increase petty cash to $175.00.

The amount of the outstanding checks is included on the bank reconciliation as a(n)

A $135 petty cash fund has cash of $44 and receipts of $93. The journal entry to replenish the account would include a

Which of the following would be added to the balance per books on a bank reconciliation?

During a bank reconciliation process,

Journalize the entries to record the following: Journal

In preparing a bank reconciliation, the amount indicated by a credit memo for a note receivable collected by the bank is added to the balance per company's records.

A person authorized to write checks drawn on a checking account at a bank must sign and have on file with the bank a

Identify each of the following reconciling items as (a) an addition to the cash balance according to the bank statement, (b) deduction from the cash balance according to the bank statement, (c) an addition to the cash balance according to the company's records, or (d) a deduction from the cash balance according to the company's records. Assume that none of the transactions reported by bank debit and credit memos have been recorded by the company. Also, indicate by writing (Entry) those items that will require a journal entry in the company's accounts.

Which of the following should not be considered cash by an accountant?

A check drawn by a company in payment of a voucher for $635 was recorded in the journal as $365. This item would be included in the bank reconciliation as a(n)

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?

List the principal advantage of electronic funds transfers.

The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times. Present entries to record the transactions for each of the two days of cash receipts from sales.

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