At Freshplace Grocery, customers give their purchases to a sales clerk along with cash. The sales clerk enters the sale in a cash register and puts the money in the register drawer. At the end of the day, the sales clerk gives the cash and the register tape to the cashier. The cashier reconciles the cash and the tape to make sure all of the cash is present. complete a Table of Entities and Activities for Narrative.
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At Freshplace Grocery, customers give their purchases to a sales clerk along with cash. The sales clerk enters the sale in a cash register and puts the money in the register drawer. At the end of the day, the sales clerk gives the cash and the register tape to the cashier. The cashier reconciles the cash and the tape to make sure all of the cash is present. complete a Table of Entities and Activities for Narrative.
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- Transactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows: Prepare a purchases journal and a cash payments journal to record these transactions. The forms of the journals are similar to those illustrated in the text. Place a check mark () in the Post. Ref. column to indicate when the accounts payable subsidiary ledger should be posted. Wisk Away Cleaning Services Inc. uses the following accounts:Identify the DFD in the following narrative: Hemant buys a new scooter at a local shop and pays with his debit card. The sales clerk enters the transaction in the cash register. At the time of closing, the sales clerk gives the register tape and the debit card PIN tape to his manager.The following procedures are used by The Taco Shop.a. Customers pay cash for all food orders. Cash is placed in a cash register and a receipt is issuedupon request by the customer.b. At the end of each day, the cashier counts the cash, prepares a cash count sheet, and has themanager count the cash and review and sign the cash count sheet.c. At three times during the day, excess cash is removed from the cash registers and placed in avault until it is taken for night deposit at the local bank.d. Orders for drink cups, straws, condiments, and other supplies are written on prenumbered purchase order forms and are approved by the manager before being sent to an authorized supplier.e. When supplies are received, they are stacked just inside the back door to the kitchen, which isleft unlocked because part-time employees frequently arrive and leave at various times duringthe day.Required:1. Indicate whether each procedure represents a strength or weakness. Explain your reasons.2. For each…
- You are working as an Accounts Receivable Officer in Super Mart Store. Your Store manager asked you to make a data flow context diagram of the following transaction: A customer made a payment on account of purchases made last month. The customer payment was processed by receipt department and deposited in the bank. The remittance advice is forwarded to Account receivable department of updating of record. The credit manager is informed about the receivable information from the customerRecord the transactions in the cash receipts journal. Use two lines for December 7 and December 14 transactions. Enter the cash sales first, followed by bank credit card sales. Total the columns. Use the general journal to record sales returns and allowances. Enter the posting references when you complete part 2.The following procedures are used by Complete Wholesale Incorporated.a. All sales are made on account, with each sale being indicated on a sequentially numberedsales invoice.b. Customer payments are received in the mail by the office receptionist, who sends the checksto a cashier for deposit and the remittance advices to the accounting department for recordingagainst the customer’s account balance.c. The office receptionist is assigned the job of handling all customer complaints.d. When a customer has a legitimate complaint about goods sold to the customer on account, thereceptionist will phone the accounting department to request that the customer’s account becredited for the sales allowance.e. The company’s inventory is stored in a locked warehouse that is monitored by surveillancecameras.f. Payments to the company’s suppliers are made only after the supplier’s invoice is received andcompared to the receiving report.Required:1. Indicate whether each procedure represents a strength or…
- The following procedures were recently installed by The China Shop:a. All sales are rung up on the cash register, and a receipt is given to the customer. All sales are recorded on a record locked inside the cash register.b. Each cashier is assigned a separate cash register drawer to which no other cashier has access.c. At the end of a shift, each cashier counts the cash in his or her cash register, unlocks the cash register record, and compares the amount of cash with the amount on the record to determine cash shortages and overages.d. Checks received through the mail are given daily to the accounts receivable clerk for recording collections on account and for depositing in the bank.e. Vouchers and all supporting documents are perforated with a PAID designation after being paid by the treasurer.f. Disbursements are made from the petty cash fund only after a petty cash receipt has been completed and signed by the payee.g. The bank reconciliation is prepared by the cashier. Instructions…The procedures used for over-the-counter receipts are as follows: At the close of each day’s business, the salesclerks count the cash in their respective cash drawers, after which they determine the amount recorded by the cash register and prepare the memo cash form, noting any discrepancies. An employee from the cashier’s office counts the cash, compares the total with the memo, and takes the cash to the cashier’s office.a. Indicate the weak link in internal control.b. How can the weakness be corrected?Upon receipt of the documents from accounts payable department, the cash disbursements clerk files the documents until their payment due date. On the due date, the clerk prepares a cheque for the invoiced amount, which is sent to the treasurer who signs it and mails back to the supplier. The cash disbursement clerk then updates the cheque register, accounts payable ledger, and accounts payable control account from the clerk’s terminal. Finally, the clerk files the invoice and copy of purchase order, receiving report, cheque in the department. Required: Describe the internal control weakness in Two Symbols’ cash disbursements system and discuss the risk associated with the weakness.
- Match each document in a voucher system with its description. Document 1. Purchase requisition 2. Purchase order 3. Invoice 4. Receiving report 5. Invoice approval 6. Voucher Description A. An itemized statement of goods prepared by the vendor listing the customer’s name, items sold, sales prices, and terms of sale. B. An internal file used to store documents and information to control cash payments and to ensure that a transaction is properly authorized and recorded. C. A document used to place an order with a vendor that authorizes the vendor to ship ordered merchandise at the stated price and terms. D. A checklist of steps necessary for the approval of an invoice for recording and payment; also known as a check authorization. E. A document used by department managers to inform the purchasing department to place an order with a vendor. F. A document used to notify the appropriate persons that ordered goods have arrived, including a description of the quantities and condition of…Read and analyze each of the transactions and explain whether they are considered improper segregation of functions? Explain your answer. ed from ro rata hich person The billing department prepares the customers' invoices and records the sale in the sales journal. a. b. Mailroom clerk open cash receipts envelopes from customers and also prepares the remittance list. ses Accounting clerk receives journal vouchers from various departments and post to the GL accounts. ensation C. does and 00.00 d. The sales department approves sales credit memos as the result of product returns and forwards these to the AR department, which adjusts the customer accounts to reflect the return. IIThe following procedures were recently implemented by SUP Yoga Co.: Each cashier is assigned a separate cash register drawer to which no other cashier has access. All sales are rung up on the cash register, and a receipt is given to the customer. All sales are recorded on a record locked inside the cash register. At the end of a shift, each cashier counts the cash in his or her cash register, unlocks the cash register record, and compares the amount of cash with the amount on the record to determine cash shortages and overages. Checks received through the mail are given daily to the accounts receivable clerk for recording collections on account and for depositing in the bank. Vouchers and all supporting documents are stamped PAID after being paid by the treasurer. Disbursements are made from the petty cash fund only after a petty cash receipt has been completed and signed by the payee. The bank reconciliation is prepared by the accountant. Instructions: Indicate whether each of the…