Question 1

A petty cash fund was originally established with a check for $100.On August 31,which is the period end,the petty cash fund included the following:
  Prepare the general journal entry to record the replenishment of the petty cash fund on August 31.

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Question 2

Following are seven items a through g that would cause Rembrandt Company's book balance of cash to differ from its bank statement balance of cash.
a.A service charge imposed by the bank.
b.A check listed as outstanding on the previous period's reconciliation and still outstanding at the end of this month.
c.A customer's check returned by the bank is marked "Not Sufficient Funds (NSF)".
d.A deposit mailed to the bank on the last day of the current month and not recorded on this month's bank statement.
e.A check paid by the bank at its correct $190 amount recorded in error in the company's check register at $109.
f.The bank collected a note receivable for Rembrandt Company and deposited the proceeds in the company's account.At period end,Rembrandt had yet to record this deposit.
g.A check written in the current period that is not yet paid or returned by the bank.
Indicate where each item,letters a-g,would appear on Rembrandt Company's bank reconciliation by placing its identifying letter in the parentheses in the proper section of the form below.

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Question 3

Describe the use and purpose of purchase requisitions?

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Question 4

A company established a petty cash fund in November of the current year and experienced the following transactions affecting the fund during November:
  Prepare the journal entries to establish the fund on November 1 and to reimburse the fund on November 28.

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Question 5

At the end of the current period,a company reported $725,000 in net credit sales and $100,000 in ending accounts receivable.Calculate this company's days' sales uncollected at the end of the current period.

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Question 6

The treasurer of a company is responsible for cash management.List five cash management principles that are essential for effective cash management.

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Question 7

A company reported net sales for Year 1 of $265,000 and $545,000 for Year 2.The year-end balances of accounts receivable were $39,000 for Year 1 and $92,000 for Year 2.Calculate the days' sales uncollected at the end of each year for this company and describe any changes in the apparent liquidity of the company's receivables.

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Question 8

Describe a bank reconciliation and discuss its purpose.

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Question 9

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 10

Describe a petty cash account and its purpose.

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Question 11

On June 1,a company established a $75 petty cash fund.On June 27,the petty cash fund contains $5.25 in cash and the following paid petty cash receipts: postage,$19.50; office supplies,$36.25; and miscellaneous expense $14.00.Give the general journal entry to reimburse the fund on June 27.

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Question 12

When using a voucher system,what are the steps on the invoice approval checklist that must be completed before an invoice approval is complete and a voucher prepared?

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Question 13

Quibble Company established a $300 petty cash fund by issuing a check to the custodian on February 1.On February 15,the petty cash fund was replenished and increased to $800 in total.The contents of the petty cash fund at the time of the February 15 replenishment were:
  The company uses the perpetual inventory method.Prepare Quibble's general journal entry to record both the reimbursement and the increase of the petty fund on February 15.

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Question 14

Plenty Co.established a petty cash fund of $150 on October 1.On October 10,the petty cash fund was replenished when there was $49 remaining and there were petty cash receipts for: office supplies,$47; transportation-in on inventory purchased,$32; and postage,$22.On October 15,the petty cash fund was decreased to $125 in total.Plenty Co.uses the perpetual inventory system.Record the above transactions in general journal form.

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Question 15

Discuss how the principles of internal control apply to cash receipts through the mail by giving several examples of good control measures that should be implemented.

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Question 16

The Sarbanes-Oxley Act (SOX)requires managers and auditors of companies whose stock is traded on an exchange to document and certify the system of internal controls.What are the specific requirements for auditors set forth by SOX?

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Question 17

Discuss how the principles of internal control apply to cash receipts over-the-counter by giving several examples of good control measures that should be implemented.

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Question 18

Zhang Co.uses a voucher system for documentation and verification.Complete the following grid regarding their system.

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Question 19

The following information is available for the Topper Company for the month of July.
a.On July 31,after all transactions have been recorded,the balance in the company's Cash account has a balance of $15,244.
b.The company's bank statement shows a balance on July of $16,450.
c.Outstanding checks at July total $2,063.
d.A note receivable is collected by the bank for $570,but it is not yet recorded by Topper Company.
e.A $107 NSF check from a customer,P.Flank is shown on the bank statements,but not yet recorded by Topper.
f.A deposit placed in the bank's night depository on July 31 totaling $1,275 did not appear on the bank statement.
h.Bank fees of $45 for check printing are not yet recorded by Topper Company.
Prepare the July bank reconciliation for the Topper Company.

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Question 20

Bosch Company's bank reconciliation for May is presented below.Prepare the necessary adjusting journal entries based on the reconciliation report.

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Quiz 6: Cash,fraud,and Internal Controls

A petty cash fund was originally established with a check for $100.On August 31,which is the period end,the petty cash fund included the following: Prepare the general journal entry to record the replenishment of the petty cash fund on August 31.