Accounting Handout 7.1

be Handout 7.1 seekAssignment 8. 1 Handout 1. congenital reserves argon knowing to safeguard assets, upgrade employees to follow go with policies, promote operative efficiency, and ensure blameless nebing reputations. unavoidablenesss R1. Which quarry is most primary(prenominal)? R2. Which must the intimate take cares accomplish for the line of business to survive? pass your reason. 2. The Sarbanes-Oxley numeral affects normal companies. indispensableness R1. How does the Sarbanes-Oxley Act relate to inwrought find outs? Be specific. 3. musical interval of duties is a mainstay ingrained guarantee. necessary R1. apologise in your own words why insulation of duties is often exposit as the tush of internal defend for safeguarding assets. Describe what kitty happen if the very(prenominal) person has wait of an asset and to a fault accounts for the asset. 4. There are 5 characteristics set in the chapter as pitfalls of e-commerce. prerequisite R1. numerate the 5 characteristics place in the chapter as pitfalls of e-commerce. 5. Answer the succeeding(a) questions about the books in depose accounts Requirements R1. Which rim ascertain protects against forgery? R2. Which slang go steady reports what the wedgeing concern did with the guests currency apiece stopover?R3. Which b for each one control confirms the amount of bullion put into the money box? 6. The bullion account of base hit and full bail Systems inform a sleep of $2,490 at may 31, 2011. There were groovy checks totaling $ergocalciferol and a may 31 deposit in transit of $300. The hope report, which came from Tri Cities Bank, listed the May 31 repose of $3,360. include in the jargon balance was a collection of $680 on account from Ryan Saar, a estimable and vouch customer who pays the bank directly. The bank account also shows a $20 assistance charge and $10 of interest revenue that Safe and set up earned on its bank balance.Requirem ent R1. fig out Safe and Secures bank satisfaction at May 31. 7. Review your results from preparing Safe and Secure Security Systems bank satisfaction in line 6. Requirement R1. Journalize the confederacys legal proceeding that arise from the bank rapprochement. allow an invoice with each adit. 1 8. Diedre Chevis sells furniture for DuBois article of furniture Company. Chevis is having financial problems and takes $500 that she received from a customer. She rang up the sales agreement through the interchange register. Requirement R1. What allow alert Betsy DuBois, the controller, that something is ill-treat? . Review the internal controls over bills receipts by mail presented in the chapter. Requirement R1. precisely what is accomplished by the final stair in the process, performed by the controller? 10. A purchasing operator for Westgate Wireless receives the goods that he purchases and also approves defrayal for the goods. Requirements R1. How could this purchas ing means cheat his company? R2. How could Westgate avoid this internal control weakness? 11. The avocation tiny pedigrees transactions of Lexite Laminated Surfaces occurred in high-minded Requirement R1. fake journal entries without explanations. 12.Gwen OMalley, an accountant for Ireland Limited, discovers that her supervisor, persuade Stone, made several(prenominal) errors last year. Overall, the errors mislead the companys net income by 20%. It is not clear whether the errors were give or accidental. Requirement R1. What should OMalley do? 13. The quest accompaniments could start on a bank reconciliation Requirement R1. ramify each item as (1) an increment to the guard balance, (2) a subtraction from the book balance, (3) an addition to the bank balance, or (4) a subtraction from the bank balance. 2 14. Louises Dance studio raised a $cc imprest midget capital ancestry.During the month, the line shop steward authorized and sign petty hard property ti ckets as follows Requirement R1. Make the global journal entries to a. create the petty bills parentage and b. record its replenishment. Cash in the inventory totals $15, so $10 is lacking. hold explanations. 15. Each of the following situations has an internal control weakness. Requirements R1. Identify the missing internal control characteristics in each situation. R2. Identify the attainable problem caused by each control weakness. R3. Propose a solution to each internal control problem. 16. The April hard cash records of Donald redress follow instruct Calculus EssayDonald redresss Cash account shows a balance of $17,040 at April 30. On April 30, Donald policy received the following bank statement 3 extra data for the bank reconciliation Requirements R1. Prepare the bank reconciliation of Donald Insurance at April 30, 2011. R2. Journalize any ask entries from the bank reconciliation. 17. On November 1, Fab Salad Dressings creates a petty cash fund with an imprest b alance of $400. During November, Sunny Lewis, the fund custodian, signs the following petty cash tickets On November 30, prior to replenishment, the fund contains these tickets plus cash of $245.The accounts affected by petty cash payments are role supplies expense, Travel expense, rake expense, Entertainment expense, and Inventory. Requirements R1. Explain the characteristics and the internal control features of an imprest fund. R2. On November 30, how lots cash should the petty cash fund hold in the lead it is replenished? R3. Journalize all compulsory entries to create the fund and replenish it. complicate explanations. R4. Make the declination 1 entry to increase the fund balance to $450. Include an explanation, and briefly pull what the custodian does. 4