will pay for entire paper to be completed as soon as finished

please have a good background in accounting can’t afford wrong answers

Accounting

Principles 101- Test #4

Chapter 7

Businsky – Spring 2013

Name: ______________________________ Date: _______________

5 Points

Problem #1 – (25 Points)

Sav Rocca, accountant for Shine King Cleaning is attempting to reconcile the monthly bank account. Sav Rocca has the following information:

1) The cash ledger balance at November 30 is $73,100

2) The balance according to the bank statement is $73,723

3) Deposits in transit totaled $900

4) Outstanding checks Check #104 – $500 & Check #107 – $600

5) Bank service charges were $18

6) The bank collected an EFT collection of $600 for Shine King Cleaning on account from Pierre’s Wig Stand

7) Earned interest at the bank $16

8) Shine King Cleaning made EFT payments Check Art Supplies $30 & Calpine Energy $145.

1) Prepare bank reconciliation at November 30 (15 Points)

Problem #1 continued

2) Prepare any necessary journal entries from previous page (10 Points)

Problem 2- (15 Points)

Prepare journal entries for the following petty cash transactions of Bob’s Lawn Service:

1) Established a $200 petty cash fund (5 points)

DEBIT

CREDIT

2) Replenish the petty cash fund. The fund contained the following: $77 in cash, receipts for $45 in lawn supplies purchased, receipts for $11 in fuel costs purchased, and a $17 receipt for entertainment expenses (10 points)

Journal Entry

DATE

ACCOUNTS AND EXPLANATIONS

POST.
REF.

DEBIT

CREDIT

Problem 3 – (5 Points)

3) A petty cash fund was established with a $300 balance. It currently has cash of $78 and petty cash tickets totaling $222 for travel expense. Please provide the journal entry to record the replenishment of the account.

Problem 4 – (5 Points)

1) Which of the following is NOT one of the purposes of internal control?

A) To encourage employees to follow company policy

B) To safeguard the company’s assets

C) To ensure accurate, reliable accounting records

D) To guarantee that a business makes a profit

2) In the following situation, which internal control procedure needs strengthening?

At Hofstra Services, the junior accountant collects checks and cash from customers and records the transactions into the Journal. The controller approves the journal entries and bank reconciliations. The treasurer signs checks and approves contracts.

A) Assignment of responsibilities

B) Competent, reliable, and ethical personnel

C) Separation of duties

D) Documents

3) Which of the following describes collusion?

A) When bogus websites acquire passwords and account numbers fraudulently

B) When two or more people cooperate together to defraud a company

C) When one employee steals from a company

D) When a company defrauds its suppliers by making false claims

4) Which is the MOST liquid of assets?

A) Cash

B) Accounts receivable

C) Inventory

D) Supplies

5) Which of the following is TRUE of internal control?

A) A company’s outside auditor is responsible for the company’s internal control system.

B) One of the major purposes of internal control is to ensure accurate, reliable accounting records.

C) Internal control procedures tend to diminish the importance of operational efficiency.

D) Internal controls are only necessary for large businesses.

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