Module 4 complete

Module 4 complete - Module 4 Continuing Cookie Chronicle...

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Module 4 Continuing Cookie Chronicle Ch. 7 Allen Brown The Problems with Johns Recommendations could be: The cash could be stolen John could steal from the company and then cover up the theft in the books The information on John’s laptop would be venerable to getting hacked or stolen; and possibly lost or deleted Some Improvements to these problems are: Cash should be deposited everyday if possible multiple times a day so that there is never a large amount of cash on and John should only be accountable for the accounting portion of the business, another employee such as Natalie should handle all the check writing so that no one person is in complete control. (4) Accounting records need to be held on site and regular back ups made. John should not use his personal computer because the information could be lost or stolen if something happen to his personal pc. (5) Natalie should see a monthly invoice before writing and signing checks.
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Part 2 (A) Bank Reconciliation Cash Balance, Bank Statement 3359 Deposits in Transit 110 Bank Error 27 137 3496 Outstanding checks 485 Adjusted Balance, Bank Statement 3011 Cash Balance, Books 3274 Service Charge 13 Deposit Error 30 Telus 85 NSF 135 263 Adjusted Balance, Books 3011 Check: $3,274 – $13 – $30 – $85 – $135 = $3,011 adjusted cash balance The purpose of bank reconciliation to ensure the company that their cash accounts in its general ledger is correct with what is in the bank. The first think that needs to be done here is to adjust the bank statement to its true or adjusted balance by adding the deposits in transit; subtracting the
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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 complete - Module 4 Continuing Cookie Chronicle...

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