module1_review_questions_question1

48. A sales invoice for P 5,200 was computed correctly but, by mistake, was entered as P 2,500 to the sales journal and to the accounts receivable master file. The customer remitted only  P 2,500, the amount on his monthly statement. Select the control that should have prevented the misstatement. Group of answer choices Unauthorized remittance deductions made by customers or other matters in dispute are investigated promptly by a person independent of the accounts receivable function.   Sales invoice serial numbers, prices, discounts, extensions, and footings are independently checked.   The customers’ monthly statements are verified and mailed by a responsible person other than the bookkeeper who prepared them.   Prelistings and predetermined totals are used to control postings.

Listed below are seven errors or problems that might occur in the processing of cash transactions. Also shown is a list of internal control principles. Evaluate each possible error and cite a principle that is listed that would reduce the probability of the error occurring. If none of the principles given will correct the problem, write "None." If you think more than one principle is appropriate, list all principles that apply. Internal Control Principles Establishment of responsibility Segregation of duties Physical control devices Documentation procedures e. Independent internal verification a. b. C. d. f. Human resource controls

Which of the following is not a book reconciling item? A. Book Error B. CreditMemo C. Debit Memo D. Deposit in Transit A company has P1,578,000 cash balance per bank statement, P433,000 deposit in transit, P253,000 NSF check, P105,000 erroneous credit by the bank to the entity's account, and P321,000 outstanding check. What is the adjusted cash balance? A. P1,585,000 B. P1,322,000 C. P1,542,000 D. P1,795,000   A company has P1,922,000 balance per books, P311,000 deposit in transit, P253,000 outstanding checks, P118,000 credit memo and P65,000 NSF check. What is the adjusted cash balance? A. P1,585,000 B. P1,787,000 C. P1,975,000 D. P1,722,000

Q#8: Continue with Zeal Company above. Consider that check #2236 (*) was a payroll check. The employee earned $985, Zeal's payroll clerk was distracted and accidently wrote the check for $859, transposing two numbers. The clerk did not catch the error and, consistent with the general ledger activity shown above, the clerk recorded the payment on the company's books as: $985 Wage Expense Cash $985 Select the true answer choice below: A. Zeal should ignore this error when preparing the June reconciliation but should still contact the employee whose paycheck was written incorrectly. B. Zeal should call the bank to get this situation resolved. C. Zeal should include a negative reconciling item on the bank side of the reconciliation report in the amount of $(126). D. Zeal should include a negative reconciling item on the book side of the reconciliation report in the amount of $(126). E. Zeal should include a positive reconciling item on the book side of the reconciliation report in the…

XYZ LLC dealing all its transactions through its bank to avoid employee fraud and theft. For offering daily services,the bank debited OMR 20 to the bank account and the company unaware it.How will you adjust the above reconciliation item in bank reconciliation statement? a. Add OMR 20 to the company's bank statement balance b. Add OMR 20 to the company's cash book balance c. Deduct OMR 20 from company's cash book balance d. Deduct OMR 20 from the company's cash book balance

Adjusting Entry from Bank Reconciliation Pyramid Corporation is assessed a $40 fee as the result of a $126 NSF check received from a customer for services purchased on account. Neither the fee nor the NSF check has been accounted for on Pyramid's books. Required: Record the appropriate journal entry to update Pyramid's books. If an amount box does not require an entry, leave it blank

Question: The following errors were found when the controller at Mountain Motel was doing the June 30 bank reconciliation. On June 25, the bank posted a cheque in the amount of $825 to Mountain’s bank account. The cheque had been written by another company, Mountainside Company. For each of these errors, (a) indicate if and how it would be shown on the bank reconciliation, and (b) prepare the journal entry for Mountain if required. Please explain for the answer.

10. In Exhibit 3.6, you see a credit sale to G. H. Allen that is recorded in a paper-based accounting system. On July 28, 2021, Aca Pool Co. received check number 6311 from G. H. Allen in payment of his outstanding invoice. Required: a. Record the receipt of Allen's check on the cash receipts prelist, document number CR645. Your instructor will provide you a blank form. b. Use the prelist as your source document to record this cash receipts transaction in the appropriate 14

Assume that Oman Formaldehyde Chemical Company LLC sold the chemical of OMR 540 to the customer and received the check to the same amount. The cheque deposited in the bank immediately but the cheque received from the customer was misreported in the cash receipts journal as OMR 450. Therefore while preparing the Bank Reconciliation statement, what adjustment the accountant will do? Choose the correct answer from the following given options. a. Add OMR 540 to the cash book balance b. Deduct OMR 90 from the cash book balance c. Deduct OMR 540 from the cash book balance d. Add OMR 90 to the cash book balance Clear my choice

5   While preparing the bank reconciliation for March, the accountant for Bertran Industries discovered that a $649 check in payment of an account payable had been entered incorrectly in the journal as $694. Which of the following is true?   Multiple Choice   An adjusting entry must be made to debit Cash and credit Accounts Payable for $45.   An adjusting entry must be made to debit Accounts Payable and credit Cash for $45.   The bank should be notified, and the bank should correct its records by adding $45 to the company's account.   No entry is needed for the reconciling item because it appears on the bank's side of the reconciliation.

TeleComm customer ADR circuits paid off an $9500 balance on its accounts receivable. TeleComm should record the transaction as a debit to accounts receivable-A DR circuits and a credit to cash. True or false?

Current Attempt in Progress Identify whether each of the following items would be (a) added to the book balance, or (b) deducted from the book balance in a bank reconciliation. 1. 2 3. 4. 5. EFT transfer to a supplier. Bank service charge. Check printing charge. Error recording check # 214 which was written for $260 but recorded for $620. Collection of note and interest by the bank on the company's behalf.

Which one of the following would NOT be considered as a substantive procedure? O a. Estimating payroll expense O b. Taking a sample of purchase orders to check orders over OMI 10,000 O c. Using software to identify outstanding receivables O d. Obtaining letter from bank to confirm account balance

Question No 3: The following information is available to reconcile Wild Willy’s White wash Co.   After all posting is complete on July 31,2002, the company’s Cash account has a $13,805 debit balance, but its bank statement shows a $14,350 balance. Checks outstanding total $4,180. In comparing the canceled checks returned by the bank with the entries in the accounting records, it is found that Check No. 2222 for July phone bill was correctly written and drawn for $720 but was erroneously entered in the accounting records as $270. The bank charged Wild Willy’s $40 for a safe-deposit box. Wild Willy’s does not have a safe-deposit box. A debit memorandum for $125 lists a $100 NSF check plus a $25 NSF charge. The check had been received from the Public Trust bank. Wild Willy has not yet recorded this check as NSF. Enclosed with the statement is a $20 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received. The July 31 daily cash…

Question No 3: The following information is available to reconcile Wild Willy’s White wash Co.   After all posting is complete on July 31,2002, the company’s Cash account has a $13,805 debit balance, but its bank statement shows a $14,350 balance. Checks outstanding total $4,180. In comparing the canceled checks returned by the bank with the entries in the accounting records, it is found that Check No. 2222 for July phone bill was correctly written and drawn for $720 but was erroneously entered in the accounting records as $270. The bank charged Wild Willy’s $40 for a safe-deposit box. Wild Willy’s does not have a safe-deposit box. A debit memorandum for $125 lists a $100 NSF check plus a $25 NSF charge. The check had been received from the Public Trust bank. Wild Willy has not yet recorded this check as NSF. Enclosed with the statement is a $20 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received. The July 31 daily cash…