HW Ch 6 solutions

HW Ch 6 solutions - Exercise 6-10 (25 minutes) WALSH...

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Exercise 6-10 (25 minutes) WALSH COMPANY Bank Reconciliation May 31, 2009 Bank statement balance. .......... $6,900 Book balance. . ....................... $7,750 Add Deposit of May 31. ........... 1,100 Bank error. .... 200 8,200 Deduct Deduct Outstanding checks. ........... 800 Bank service charge. ........... 50 _____ NSF check. ... 300 Adjusted bank $7,400 Adjusted book $7,400 Problem 6-1A (20 minutes) 1. Violates separation of duties . The company should implement a policy whereby the person recording incoming cash receipts is not responsible for posting the payments to the customer accounts. 2. Violates the principle of establishing responsibility . Only Jenn should have access to the petty cash fund since she is the custodian. The company should implement a policy of not allowing petty cash transactions over the lunch hour. Alternatively, Kirsten could also serve as a petty cash custodian with her own petty cash fund. 3.
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This note was uploaded on 02/01/2011 for the course ACCT 203 taught by Professor Hylton during the Summer '08 term at George Mason.

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HW Ch 6 solutions - Exercise 6-10 (25 minutes) WALSH...

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