ACC 210P Chapter 4

ACC 210P Chapter 4 - ACC 210P Chapter 4 1. Acton Company...

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ACC 210P Chapter 4 1. Acton Company needs to make adjusting entries for each of the following reconciling items. Identify the account to be debited and the account to be credited in each case. 1. A check for $59 written to the company by J. Neutron was returned NSF. 2. The monthly service charge by the bank was $34. 3. The bank collected a $1,000 note plus interest of $60 on the company’s behalf. The company had not accrued the interest.
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2. 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. Possible Errors or Problems 1. An employee steals the cash collected from a customer for an account receivable and conceals this theft by issuing a credit memorandum indicating that the customer
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ACC 210P Chapter 4 - ACC 210P Chapter 4 1. Acton Company...

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