Want answer Provide an example of an internal control and how it can prevent breakdown or fraud. In a company,what internal controls do one encounter on a regular basis? Are those controls appreciated orviewed as a nuisance that must be worked around? Explain. What are the major components of aninternal control system? Are these components always necessary? On March 1, the actual cashreceived from cash sales was $53,649 and the amount indicated by the cash register total was$53,542.Journalize the entry to record the cash receipts and cash sales.

Detailed explanation:Example of internal control: Segregation of duties ensures that different…

Answered: Provide an example of an internal…

Pkg Acc Infor Systems MS VISIO CD

10th Edition

ISBN:9781133935940

Author:Ulric J. Gelinas

Publisher:Ulric J. Gelinas

Chapter11: The Billing/accounts Receivable/cash receipts (b/ar/cr) Process

Section: Chapter Questions

Problem 2SP

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Identify the internal control principles applicable to cash receipts. BE7.5 (LO 2), C Jolson Company has the following internal control procedures over cash receipts. Identify the internal control principle that is applicable to each proced a. All over-the-counter receipts are entered in cash registers. b. All cashiers are bonded. c. Daily cash counts are made by cashier department supervisors. d. The duties of receiving cash, recording cash, and custody of cash are assigned to different individuals. e. Only cashiers may operate cash registers. Make journal entries for cash overage and shortfall. los of $6 871 50 Record the journal entry that would be necessary for each of the following
Pennington Company has the following internal control procedures over cash disbursements. Identify the internal control principle that is applicable to each procedure. a. Company checks are prenumbered. Documentation Procedures Physical Controls Establishment of Responsibility Human Resource Controls Segregation of Duties Independent Internal Verification b. The bank statement is reconciled monthly by an internal auditor. C. Blank checks are stored in a safe in the treasurer's office. d. Only the treasurer or assistant treasurer may sign checks. е. Check-signers are not allowed to record cash disbursement transactions.
Which of the following is not an appropriate internal control for cash receipts over the counter? A. The cash drawer opens after the store clerk enters a transaction. B. The store clerk deposits the cash in the bank. C. At the end of the day, the manager proves the cash by comparing the cash in the drawer against the machine's record of cash sales. D. A receipt is issued for each transaction to ensure that each sale is recorded.
The internal control procedures in Philips Company make the following provisions. Identify the principles of internal control that are being followed in each case. Employees who have physical custody of assets do not have access to the accounting records. Each month the assets on hand are compared to the accounting records by an internal auditor. A prenumbered shipping document is prepared for each shipment of goods to customers. All over-the-counter receipts are registered on cash registers. All cashier are bonded. Daily cash counts are made by Cashier department supervisors. The Duties of receiving cash, recording cash, and having custody of cash are assigned to different individuals. Only Cashier may operate cash registers. Company checks are prenumbered. The bank statement is reconciled monthly by an internal auditor. Blank checks are stored in a safe in the treasurer’s office. Only the treasurer or assistant treasurer may sign checks. Checks signers are not allowed to record cash…
Evaluating Internal Control of Cash The following procedures were recently installed by Raspberry Creek Company: a. After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payable clerk for filing. b.The accounts payable clerk prepares a voucher for each disbursement. The voucher along with the supporting documentation is forwarded to the treasurer's office for approval. c. Along with petty cash expense receipts for postage, office supplies, etc., several postdated employee checks are in the petty cash fund. d. At the end of the day, cash register clerks are required to use their own funds to make up any cash shortages in their registers. e. At the end of each day, all cash receipts are placed in the bank's night depository. f. At the end of each day, an accounting clerk compares the…
How would I do this? You have been hired as the new controller for Acme Business Products. You discover that there are no formal procedures in place for processing cash receipts from customers. Your staff consists of the following: you, one general ledger accountant, one accounts receivable staff, one accounts payable staff, and one administrative assistant. Compose your responses to the following in the form of a narrative: A. Develop a step-by-step process for the intake, deposit, recording, and reconciling of cash payments received from customers. Be sure to defend your rationale for each step of your process. B. Provide recommendations as to who in your office should perform which process tasks. Why are these the most appropriate assignments? a) Predict the impact that would take place if one of your staff left and another were on leave. Recommend temporary adjustments to the process that would be necessary if this took place.
Which of the following would not be considered good internal control for cash receipts? о A) Requiring the employee receiving cash from customers to also deposit the cash into the company's bank account. B) Recording cash receipts as soon as they are received. C) Allowing customers to pay with a credit card. D) Allowing customers to pay with a debit card.
1. During the preparation of a bank reconciliation, the assistant controller discovered that the Bank incorrectly recorded a $3290 check as $329. The controller has decided not to notify the bank but wait for the bank to detect the error. The controller plans to record the $2961 error as "Other Income" if the Bank fails to detect the error within the next three months. Please discuss whether the controller is behaving in an ethical manner. 2. How are cash equivalents reported in the financial statements? Please list two examples of cash equivalents.
Determine whether each cash receipts procedure is an internal control strength or weakness. 1. If a salesclerk makes an error in recording a cash sale, she can access the register’s electronic record to correct the transaction. 2. All sales transactions, even those for less than $1, are recorded on a cash register. 3. Two employees are tasked with opening mail that contains cash receipts. 4. One of the two employees tasked with opening mail is also the recordkeeper for the business. 5. The supervisor has access to both cash and the accounting records. 6. Receipts are given to customers only for sales that are above $20.
Identify the internal control procedures applicable to cash receipts for Ferguson Company in each of the following cases. 1. All cashiers are bonded. Documentation Procedures Physical Controls Segregation of Duties Establishment of Responsibility Human Resource Controls 2. The treasurer compares the total cash receipts to the bank deposit daily. Independent Internal Verification 3. The bookkeeper records cash receipts, which are held by the treasurer. 4. Only the treasurer holds cash receipts. 5. Deposit slips are completed for each deposit.
Rolling Hills Ltd. has the following internal controls over cash payments. Identify the control activity that is applicable to each procedure. 1. 2. 3. 4. 5. 6. Company cheques are prenumbered. The bank statement is reconciled monthly by the assistant controller. Blank cheques are stored in a safe in the controller's office. Both the controller and the assistant controller are required to sign cheques or authorize electronic payments. Cheque signers are not allowed to record cash payments. All payments are made by cheque or electronic transfer. Assignment of responsibility Review and reconciliation Segregation of duties Physical controls Documentation

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