37 - • Remittance advice sent to accounting to record •...

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Entries from Reconciliation All items on the book side require a journal entry All items added will result in a debit to cash All items subtracted will result in a credit to cash After entries are posted Cash Balance in Ledger = Adjusted Cash Balance on Reconciliation Apply internal controls to cash receipts and cash payments Internal Control over Cash Receipts Over the counter Cash register record transactions Receipts issued to customer Manager compares cash in drawer to cash register record Receipts deposited at least daily By mail Checks and remittance advice separated Checks sent to treasurer for deposit
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Unformatted text preview: • Remittance advice sent to accounting to record • Bank deposit slip compared with debit to cash Internal Control Over Cash Payments • Payment by check Provides record of payment Must be signed by authorized official Official should study evidence supporting payment Documents Used to Control Purchases • Purchase order Prepared by purchasing company to place order • Invoice Prepared by selling company to list items sent and to request payment • Receiving report Prepared by purchasing company to show that goods were received...
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This note was uploaded on 06/14/2011 for the course ACCOUNTING 23020 taught by Professor Na during the Spring '11 term at Kent State.

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