Bank reconciliation : Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books. Journal entry : Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically. Debit and credit rules: Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts. Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts. To determine: The amount cashier stole from P Company.

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Answer 1

Question

Chapter 7, Problem 7.5CP

(1)

To determine

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To determine: The amount cashier stole from P Company.

(2)

To determine

To find: ways how cashier has attempted to conceal the theft.

(3)

To determine

To indentify: Two major weakness in the internal controls and two recommendations to improve the internal controls.

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Students have asked these similar questions

Oxford Corporation began operations in 2012 and reported a pretax financial income of $225,000 for the year. Oxford's tax depreciation exceeded its book depreciation by $40,000. Oxford's tax rate for 2012 and years thereafter is 30%. In its December 31, 2012, balance sheet, what amount of deferred tax liability should be reported?

Sub. Account

Subject:- General Account

Answer 2

Question

Chapter 7, Problem 7.5CP

(1)

To determine

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To determine: The amount cashier stole from P Company.

(2)

To determine

To find: ways how cashier has attempted to conceal the theft.

(3)

To determine

To indentify: Two major weakness in the internal controls and two recommendations to improve the internal controls.

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Answer 3

Question

Chapter 7, Problem 7.5CP

(1)

To determine

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To determine: The amount cashier stole from P Company.

(2)

To determine

To find: ways how cashier has attempted to conceal the theft.

(3)

To determine

To indentify: Two major weakness in the internal controls and two recommendations to improve the internal controls.

Expert Solution & Answer

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Answer 4

Question

Chapter 7, Problem 7.5CP

(1)

To determine

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To determine: The amount cashier stole from P Company.

(2)

To determine

To find: ways how cashier has attempted to conceal the theft.

(3)

To determine

To indentify: Two major weakness in the internal controls and two recommendations to improve the internal controls.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 7.5CP

(1)

To determine

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To determine: The amount cashier stole from P Company.

(2)

To determine

To find: ways how cashier has attempted to conceal the theft.

(3)

To determine

To indentify: Two major weakness in the internal controls and two recommendations to improve the internal controls.

Answer 6

Chapter 7, Problem 7.5CP

(1)

To determine

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To determine: The amount cashier stole from P Company.

Answer 7

Chapter 7, Problem 7.5CP

(1)

To determine

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To determine: The amount cashier stole from P Company.

Answer 8

(2)

To determine

To find: ways how cashier has attempted to conceal the theft.

Answer 9

(2)

To determine

To find: ways how cashier has attempted to conceal the theft.

Answer 10

(3)

To determine

To indentify: Two major weakness in the internal controls and two recommendations to improve the internal controls.

Answer 11

(3)

To determine

To indentify: Two major weakness in the internal controls and two recommendations to improve the internal controls.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 7 - Prob. 1DQ Ch. 7 - Prob. 2DQ Ch. 7 - Prob. 3DQ Ch. 7 - Prob. 4DQ Ch. 7 - Prob. 5DQ Ch. 7 - Prob. 6DQ Ch. 7 - Prob. 7DQ Ch. 7 - Prob. 8DQ Ch. 7 - Prob. 9DQ Ch. 7 - Prob. 10DQ

Solution Summary: The author explains that bank reconciliation is the statement prepared by the company to remove the differences and disagreement between cash balance per bank and cash balanced per books.

Concept explainers

To find: ways how cashier has attempted to conceal the theft.

To indentify: Two major weakness in the internal controls and two recommendations to improve the internal controls.

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Chapter 7 Solutions