Exam 8: Sarbanes-Oxley, Internal Control, and Cash

The bank statement for Gatlin Co. indicates a balance of $7,735.00 on June 30, 2010. After the journals for June had been posted, the cash account had a balance of $4,098.00. Prepare a bank reconciliation on the basis of the following reconciling items:

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

Derek Company gathered the following reconciling information in preparing its September bank reconciliation:

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

EFT

The following data were gathered to use in reconciling the bank account of Savannah Company: What is the adjusted balance on the bank reconcilition?

Why would a bank require a company to maintain a compensating balance?

All bank memos reported on the bank reconciliation require entries in the company's accounts.

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

If the balance in Cash Short and Over at the end of a period is a credit, it should be reported as an "other income" item on the income statement.

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.

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

List the principal advantage of Electronic Funds Transfers.

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.

Present entries to record the following transactions:

The actual cash received during the week ended January 16 for cash sales was $7,427 and the amount indicated by the cash register total was $7,413. Journalize the entry to record the cash receipts and cash sales. Journal

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)

A bank statement

A voucher is a form on which is recorded pertinent data about a liability and the particulars of its payment.

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)?