P08-1 - Two people on separate shifts should both be...

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GENERAL JOURNAL Dylan Co. e _________ 1 Date Debit Credit 1-May Petty Cash 350 Cash 350 To establish a petty cash fund 15-May Miscellaneous Expense 89.15 Janitorial Expense 109.20 Postage Expense 60.90 Advertising Expense 80.01 Cash 339.26 To reimburse petty cash Cash Over and Short 6.10 Cash was over 16-May Petty Cash 200 Cash 200 To increase the petty cash amount 31-May Postage Expense 59.10 Business Mileage Reimbursement 47.05 Delivery Charges 45.58 Cash 151.73 Cash Over and Short 8 31-May Petty Cash 50 Cash 50 Problem 8-1A 1 Violates "separate recordkeeping from custody of assets". Should assign one of these duties to another employee. 2 Violates "divide responsibilities for related transactions".
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Unformatted text preview: Two people on separate shifts should both be equally responsible/ trained for this duty. 3 Violates "apply technological controls". Maybe this should be a password protected item so that people can still access the information when needed. 4 Violates "perform regular and independent reviews". He may be missing something major by not doing this. 5 Violates"insure assets and bond key employees". Setting herself up for failure, this is a big mistake that cannot be made, insurance is a must. To reimburse petty cash Cash was short To decrease the petty cash amount...
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