Questions from Financial Accounting

Q: Assume Victor’s Vans borrowed $15 million from Jay’s Bank and agreed

Assume Victor’s Vans borrowed $15 million from Jay’s Bank and agreed to (a) Pay an interest rate of 7.2% and (b) Maintain a compensating balance amount equal to 5.3% of the loan. Determine Victor’s Va...

Q: Identify the internal control weakness in the following situations. State how

Identify the internal control weakness in the following situations. State how the person can hurt the company. a. Jay Mott works as a security guard at TOWN parking in Des Moines. Mott has a master ke...

Q: The following situations describe two cash payment situations and two cash receipt

The following situations describe two cash payment situations and two cash receipt situations. In each pair, one set of internal controls is better than the other. Evaluate the internal controls in ea...

Q: Scott Smart served as executive director of Downtown Huntsville, an organization

Scott Smart served as executive director of Downtown Huntsville, an organization created to revitalize Huntsville, Alabama. Over the course of 14 years, Smart embezzled $236,000. How did Smart do it?...

Q: The following items appear on a bank reconciliation. Classify each

The following items appear on a bank reconciliation. Classify each item as (a) An addition to the bank balance, (b) A subtraction from the bank balance, (c) An addition to the book balance, or (d) A s...

Q: D. J. Hardy’s checkbook and August bank statement show the

D. J. Hardy’s checkbook and August bank statement show the following: Requirement Prepare Hardy’s bank reconciliation at August 31.

Q: During 2013, Chocolate Passion completed these transactions: 1.

During 2013, Chocolate Passion completed these transactions: 1. Sales revenue on account, $1,030,000 2. Collections on account, $895,000 3. Write-off s of uncollectibles, $15,000 4. Uncollectible-acco...

Q: Gulig and Doherty, a law firm, started 2012 with accounts

Gulig and Doherty, a law firm, started 2012 with accounts receivable of $26,000 and an allowance for uncollectible accounts of $2,000. The 2012 service revenues on account totaled $183,000, and cash c...

Q: Evan Neal operates a roller skating center. He has just received

Evan Neal operates a roller skating center. He has just received the monthly bank statement at January 31 from Citizen National Bank, and the statement shows an ending balance of $575. Listed on the s...

Q: The cash data of Durkin Automotive for April 2012 follow:

The cash data of Durkin Automotive for April 2012 follow: Durkin received the following bank statement on April 30, 2012: Additional data for the bank reconciliation include the following: a. The...