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ANTH170C Question Preparation F16 Ch7

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ANTH170C Question Preparation F16 Ch7 Clicker Question Preparation Guide: Ch. 7 Clicker questions will be asked in class based on your completion of this preparation guide. You will not have time to complete this gui ...

ANTH170C Question Preparation F16 Ch7 Clicker Question Preparation Guide: Ch. 7 Clicker questions will be asked in class based on your completion of this preparation guide. You will not have time to complete this guide in class! 1) What are the three factors that contribute to fraud? 2) John Jackson is concerned with internal controls over checks received from customers at Go Sporting Goods. All checks received in the mail are sent to the accounting department, where they are stamped “For Deposit Only”. The accounting department records the checks and also deposits the checks weekly. a. What principle of internal control is being violated? b. How could a new policy improve this internal control violation? 3) At Nature’s Café, Joe & Jan use the same cash register drawer. a. What principle of internal control is being violated? b. How could a new policy improve this internal control violation? 4) ABC Co. prepares customer invoices on plain blank paper. a. What principle of internal control is being violated? b. How could a new policy improve this internal control violation? 5) The employee responsible for the XYZ Co’s checks keeps the checks in her unlocked desk drawer. a. What principle of internal control is being violated? b. How could a new policy improve this internal control violation? 6) On July 31, 2015, Roads Company had a cash balance per books of $9,884. The statement from Star Bank on that date showed a balance of $7,713. A comparison of the bank statement with the cash account revealed the following facts: • The bank service charge for July was $35. • The bank collected an Electronic Funds Transfer (EFT) from a customer of Roads Company for $1,300. • Company check No. 2480 issued to T. Laird, a creditor, for $384 cleared the bank in July but was incorrectly recorded by the company for $348. • Checks outstanding on July 31 totaled $1,200. • Deposits in transit on July 31 totaled $4,000. • On July 31, the bank statement showed an NSF charge of $600 for a check received by the company from a customer, K. Wagner, which had been a payment on account. a. Prepare the bank reconciliation below: Cash Balance Per Books Cash Balance Per Bank Adjusted Balance: Adjusted Balance: b. Prepare the necessary journal entries that Roads Company needs to record.

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