module 4.docx - Homework 1 Question 1 0.04166 out of 0.5 points Which of the following are elements of internal control over cash receipts(Select all

module 4.docx - Homework 1 Question 1 0.04166 out of 0.5...

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Homework 1 Question 1 0.04166 out of 0.5 points Which of the following are elements of internal control over cash receipts? (Select all that apply.) Selected Answers: A manager is responsible for handling all cash transactions. Cash receipts are summarized and their total is calculated. Answers: A different employee deposits the cash at the bank. Two employees should not share the same cash drawer. A manager is responsible for handling all cash transactions. Cash receipts are summarized and their total is calculated. Response Feedback: See Module 4, LO 1 Internal Controls. Question 2 0.5 out of 0.5 points The following information is used to prepare Justin Case, Inc.'s bank reconciliation for September. Balance per bank statement at September31 $11,200 Outstanding checks 2,200 Deposits in transit 3,700 NSF check from customer 300 Bank service charge 60 Cash balance per Honest Tea's books at September 31 $13,060 Justin Case, Inc.'s Cash balance after making the necessary entries per its September bank reconciliation equals ______. Selected Answer: $12,7 00 Answers: $12,3 40
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$13,4 20 $9,70 0 $12,7 00 Re sp on se Fe ed ba ck: See Module 4, LO 1.2.1 Bank Reconciliations. Outstanding checks are checks that have been written and recorded by the company and sent to NSF check decreases the company's cash balance now because it was previously recorded as an To get to the true cash balance, the balance in the accounting records, i.e., the book balance, is found on the bank statement by: adding direct deposits (electronic fund transfers or EFTs), subtracting direct payments (EFTs), subtracting bank service charges and fees, subtracting non-sufficient funds (NSF) checks(bounced customer checks), and subtracting any company errors made in the company's favor and adding any erro The true cash balance should agree with the bank balance updated by the information that has adding deposits in transit which are deposits made by the company that have not subtracting outstanding checks which are checks written by the company that hav subtracting any bank errors made in the banks favor and adding any errors made Question 3 0.5 out of 0.5 points Which of the following is the entry to record the purchase of merchandise on credit? Selected Answer: Debit Inventory ; Credit Accounts Payable Answers: Debit Purchases ; Credit Cost of Goods Sold Debit Purchases ; Credit Accounts Payable Debit Sales ; Credit Accounts Receivable Debit Inventory ; Credit Accounts Payable Response Feedback: See Module 4 LO2. Purchase and Sale of Inventory. The company gets, i.e., debits, Inventory (+A) a nd gives, i.e. credits, Accounts Payable (+L). Question 4 0.5 out of 0.5 points Record the entry for the sale and the cost of the sale of merchandise to a customer on account for $800, which cost $500, by selecting which accounts are debited and which are credited.
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