Questions from General Accounting

Q: Werth Inc.’s bank statement from Hometown Bank at August 31

Werth Inc.’s bank statement from Hometown Bank at August 31, 2014, gives the following information. A summary of the Cash account in the ledger for August shows the following: bala...

Q: A new accountant at Leftwich Inc. is trying to identify which

A new accountant at Leftwich Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April...

Q: Enright Company expects to have a cash balance of $46,

Enright Company expects to have a cash balance of $46,000 on January 1, 2014. These are the relevant monthly budget data for the first two months of 2014. 1. Collections from customers: January $71,00...

Q: Lyle Company maintains a petty cash fund for small expenditures. These

Lyle Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August. Aug. 1 Established the petty cash fund by writing a check on Westown Bank fo...

Q: The following control procedures are used in Kelton Company for over-

The following control procedures are used in Kelton Company for over-the-counter cash receipts. 1. Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if the...

Q: The following control procedures are used in Penny’s Boutique Shoppe for cash

The following control procedures are used in Penny’s Boutique Shoppe for cash disbursements. 1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. 2. T...

Q: At Nunez Company, checks are not prenumbered because both the purchasing

At Nunez Company, checks are not prenumbered because both the purchasing agent and the treasurer are authorized to issue checks. Each signer has access to unissued checks kept in an unlocked file cabi...

Q: Sally Rice is unable to reconcile the bank balance at January 31

Sally Rice is unable to reconcile the bank balance at January 31. Sally’s reconciliation is shown here. Cash balance per bank …………………………..$3,677.20 Add: NSF check ………………………………………..450.00 Less: Bank s...

Q: The following information pertains to Joyce Company. 1. Cash

The following information pertains to Joyce Company. 1. Cash balance per bank, July 31, $7,328. 2. July bank service charge not recorded by the depositor $38. 3. Cash balance per books, July 31, $7,36...

Q: On October 5, Narveson Company buys merchandise on account from Rossi

On October 5, Narveson Company buys merchandise on account from Rossi Company. The selling price of the goods is $5,000, and the cost to Rossi Company is $3,000. On October 8, Narveson returns defecti...