ACCT 211 Homework 6 Cash, Fraud, and Internal Control Problems Assignment solutions complete answers

ACCT 211 Homework 6 Cash, Fraud, and Internal Control Problems Assignment solutions complete answers 

 

Just put your values given and automatically provide answers for you!

 

Kiona Company set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year).
 

May 1
Prepared a company check for $300 to establish the petty cash fund.
May 15
Prepared a company check to replenish the fund for the following expenditures made since May 1.
May 15
a. Paid $93.60 for janitorial expenses.
May 15
b. Paid $76.41 for miscellaneous expenses.
May 15
c. Paid postage expenses of $52.20.
May 15
d. Paid $68.58 to Facebook for advertising expense.
May 15
e. Counted $23.01 remaining in the petty cashbox.
May 16
Prepared a company check for $200 to increase the fund to $500.
May 31
The petty cashier reports that $349.32 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
May 31
f. Paid postage expenses of $53.73.
May 31
g. Reimbursed the office manager for mileage expense, $42.78.
May 31
h. Paid $44.17 in delivery expense for products to a customer, terms FOB destination.
May 31
The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $450.
 
Required:
Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to reflect any increase or decrease in the fund balance on May 16 and May 31. (Round your answers to 2 decimal places.)

 

Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory.
 

February 2
Wrote a $350 check to establish a petty cash fund.
February 5
Purchased paper for the copier for $14.95 that is immediately used.
February 9
Paid $34.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
February 12
Paid $8.65 postage to deliver a contract to a client.
February 14
Reimbursed Adina Sharon, the manager, $72 for mileage on her car.
February 20
Purchased office paper for $68.77 that is immediately used.
February 23
Paid a courier $19 to deliver merchandise sold to a customer, terms FOB destination.
February 25
Paid $11.20 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
February 27
Paid $54 for postage expenses.
February 28
The fund had $25.02 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.
February 28
The petty cash fund amount is increased by $140 to a total of $490.
 
Required:
1. Prepare the journal entry to establish the petty cash fund.
2. Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense.
3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount.

 

The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31.

a.   On July 31, the company’s Cash account has a $24,992 debit balance, but its July bank statement shows a $26,500 cash balance.

b.   Check Number 3031 for $1,170, Check Number 3065 for $361, and Check Number 3069 for $1,938 are outstanding checks as of July 31.

c.   Check Number 3056 for July rent expense was correctly written and drawn for $1,220 but was erroneously entered in the accounting records as $1,210.

d.   The July bank statement shows the bank collected $9,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement.

e.   The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.

f.     The July statement shows a $14 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.

g.   Branch’s July 31 daily cash receipts of $10,632 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.

Required:
1. Prepare the bank reconciliation for this company as of July 31.

 

2. Prepare the journal entries necessary to make the company’s book balance of cash equal to the reconciled cash balance as of July 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

 

Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, Number 5888 for $1,085 and Number 5893 for $499. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation.

 

Date
Description
Withdrawals
Deposits
Balance
September 1
 
 
 
$ 19,500
September 3
Check #5888
$ 1,085
 
$ 18,415
September 4
Check #5902
$ 789
 
$ 17,626
September 5
Cash deposit
 
$ 1,104
$ 18,730
September 7
Check #5901
$ 1,809
 
$ 16,921
September 12
Cash deposit
 
$ 2,221
$ 19,142
September 17
NSF check
$ 635
 
$ 18,507
September 20
Check #5905
$ 976
 
$ 17,531
September 21
Cash deposit
 
$ 4,092
$ 21,623
September 22
Check #5903
$ 368
 
$ 21,255
September 22
Check #5904
$ 2,146
 
$ 19,109
September 25
Cash deposit
 
$ 2,355
$ 21,464
September 28
Check #5907
$ 215
 
$ 21,249
September 29
Check #5909
$ 1,853
 
$ 19,396
September 30
Collected note
 
$ 1,620
$ 21,016
September 30
Interest earned
 
$ 19
$ 21,035
   

From Chavez Company’s Accounting Records
 

Cash Receipts Deposited
Date
Cash Debit
September 5
1,104
September 12
2,221
September 21
4,092
September 25
2,355
September 30
1,653
 
11,425
 

Cash Payments
Check Number
Cash Credit
5901
1,809
5902
789
5903
368
5904
2,108
5905
976
5906
1,049
5907
215
5908
383
5909
1,853
 
9,550
 

Cash
Account Number 101
Date
Explanation
PR
Debit
Credit
Balance
August 31
Balance
 
 
 
17,916
September 30
Total receipts
R12
11,425
 
29,341
September 30
Total payments
D23
 
9,550
19,791


Additional Information

1.   (a) Check Number 5904 is correctly drawn for $2,146 to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $2,108.

2.   (b) The NSF check shown in the statement was originally received from a customer, S. Nilson, in payment of her account. Its return has not yet been recorded by the company.

3.   (c) The collection of the note on September 30 is not yet recorded by the company.

Required:
1. Prepare the September 30 bank reconciliation for this company.

 

2. Prepare journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)