Questions from Financial Accounting

Q: Peacock Company requires that all documents supporting a check be cancelled by

Peacock Company requires that all documents supporting a check be cancelled by punching a hole through the packet. Why is this practice required? What might happen if it were not?

Q: The Cash account of Rampart Corp. reported a balance of $

The Cash account of Rampart Corp. reported a balance of $2,540 at October 31. Included were outstanding checks totaling $900 and an October 31 deposit of $400 that did not appear on the bank statement...

Q: After preparing Rampart Corp.’s bank reconciliation in Short Exercise 4

After preparing Rampart Corp.’s bank reconciliation in Short Exercise 4-8 , make the company’s journal entries for transactions that arise from the bank reconciliation. Date each transaction October 3...

Q: Brenda Small manages Harris Manufacturing. Small fears that a trusted employee

Brenda Small manages Harris Manufacturing. Small fears that a trusted employee has been stealing from the company. This employee receives cash from clients and also prepares the monthly bank reconcili...

Q: Gretchen Cilla sells memberships to the Denver Symphony Association in Denver,

Gretchen Cilla sells memberships to the Denver Symphony Association in Denver, Colorado. The Symphony’s procedure requires Cilla to write a patron receipt for all memberships sold. The receipt forms a...

Q: Roper stores use point-of-sale terminals as cash registers

Roper stores use point-of-sale terminals as cash registers. The register shows the amount of each sale, the cashreceived from the customer, and any change returned to the customer. The machine also pr...

Q: Each of the following situations reveals an internal control weakness:

Each of the following situations reveals an internal control weakness: a. In evaluating the internal control over cash payments of Farley Manufacturing, an auditor learns that the purchasing agent is...

Q: McIntosh stores use point-of-sale terminals as cash registers

McIntosh stores use point-of-sale terminals as cash registers. The register shows the amount of each sale, the cashreceived from the customer, and any change returned to the customer. The machine also...

Q: Flat Flyers Company manufactures a popular line of remote airplanes. Flat

Flat Flyers Company manufactures a popular line of remote airplanes. Flat Flyers employs 125 workers and keeps their employment records on time sheets that show how many hours the employee works each...

Q: Gale Communications, Inc., is preparing its cash budget for 2012

Gale Communications, Inc., is preparing its cash budget for 2012. Gale ended 2011 with cash of $85 million, and managers need to keep a cash balance of at least $78 million for operations. Collections...