Module 4 ccc8 - information on a computer provided by...

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Module 4 ccc8 Allen Brown The problems with Johns Suggestions are: (1) The cash could be stolen (2) John could cover the theft due to a lack of accountability (3) If stored in a single place such as a laptop the information could easily be lost if the computer crashed. Improvements could be: (1) Cash needs to be put in the bank everyday. (2) John should only be responsible for accounting. Natalie then would sign all checks and be responsible for the deposits. (3) The Bank reconciliations should be handled by someone not directly associated with the cash flow of the company; with the size of Natalie’s company this is not possible but she, not John should handle the reconciliations each month. (4) Accounting records are to be kept on site at the business and there should also be back ups made. John needs to prepare the accounting
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Unformatted text preview: information on a computer provided by cookie creations and not his personal laptop. (5) John needs to prepare the monthly accounting information and then give it to Natalie for approval before the pays him. (a) COOKIE CREATIONS Bank Reconciliation June 30, 2008 Bank Cash Balance 3359 Add: Deposit Pending 110 Bank Error 27 Minus: Checks Paid 485 Adjusted Bank Balance 3011 Book Cash Balance 3274 Minus: Service 13 Deposit Error 30 Nsf Check 85 TELUS 135 Adjusted Book Balance 3011 (b) June 30 Bank Charge 13 30 Teaching Earnings 30 Cash: 30 30 Telephone Cost 85 Cash: 85 30 Accounts Receivable 135 Cash: 135 Check: $3,274 $13 $30 $85 $135 = $3,011 adjusted cash balance (c)The balance sheet would show that cash at June 30 th , 2008 would be $3,011....
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This note was uploaded on 04/04/2011 for the course MNG 500 taught by Professor Linkiden during the Spring '11 term at UMass (Amherst).

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Module 4 ccc8 - information on a computer provided by...

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