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Exam 6: Banking Procedure and Control of Cash

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Question 31

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The Petty Cash account should never be debited when the fund is replenished.

A) True
B) False

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Question 32

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Prepare journal entries for the following petty cash fund transactions:

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Question 33

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For each of the following,identify in Column 1 the category to which the account belongs,in Column 2 the normal balance for the account,in Column 3 the financial statement on which the account balance is reported,and in Column 4 the nature of the account (permanent/temporary). Example: -

The change fund is what type of account?

Vanessa's Gymnastics' cash register tapes do not agree with cash receipts.The facts are: total cash register tapes $400;total coins and currency $404.The summary journal entry to record the day's transactions would include a:

Determine the cash shortage given the following: The balance per the petty cash account $200 The count of coin and currency amounts to $120 There are receipts: for telephone costs of $25,for supplies of $6,for transportation $6,for funeral flowers $38 $ ________

Any adjustment to the depositor's records because of an item on the bank statement does not require a journal entry.

An error,on the company's books,in recording a $72 deposit as $27 would be included on the bank reconciliation as a(n) :

The replenishment of the petty cash fund was recorded twice.This would cause:

For each of the following,identify in Column 1 the category to which the account belongs,in Column 2 the normal balance for the account,in Column 3 the financial statement on which the account balance is reported,and in Column 4 the nature of the account (permanent/temporary). Example: - $\begin{array} { | l | l | l | l | l | } \hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \\\hline \text { Petty Cash } & & & & \\\hline\end{array}$

A blank endorsement on a check:

The normal balance of the Petty Cash account is a credit.

The entry to establish the petty cash fund was not completed.This would cause:

An example of an internal control is:

On a bank reconciliation,outstanding checks are deducted from the balance per the bank.

A payment for $46 is incorrectly recorded on the checkbook stub as $64.The $18 error should be shown on the bank reconciliation as:

________ Bought Supplies on account

Indicate what effect each situation will have on the bank reconciliation process.Place the number of your choice beside the items listed. 1.Add to bank balance 2.Deduct from bank balance 3.Add to checkbook balance 4.Deduct from checkbook balance ________ a.deposit in transit ________ b.bank service charge ________ c.NSF check ________ d.Check written for $95 recorded on the company's ledger as $59 ________ e.Outstanding checks ________ f.Check written for $80 recorded as $800 ________ g.Check printing charges ________ h.Interest earned on checking account

A signature card shows the signature of only the person who authorizes others in the company to sign checks.

A restrictive endorsement on a check: