Question

6. In preparing a common-size (vertical) analysis of two income statements, what account or category would represent 100%? E T 7. Which of the following is not a good internal control procedure for cash? 000,02 a. The number of persons who have access to cash should be limited b. Surprise audits of cash on hand should be made occasionally c. The functions of recordkeeping and keeping custody of cash should be combined d. All cash receipts should be recorded promptly onlordwooo000,0212 29 lo non loo Cash received from the sale of salvaged material is added to the total cost of the land. 8. T F 9. The bank statement balance for Top Hat Inc. as of March 31" is $6,150. Top Hat's records show that there is $3,300 in deposits in transit and $5,000 in outstanding checks that have not cleared. The book cash balance on March 31" is $4,750. Reviewing the bank statement shows several transactions that perhaps should be recorded. On the banko statement there were service charges of $75; an NSF check in the amount of $250; and interest earned $25. A. Calculate the reconciled company balance of cash for March. You do not need to do the actual reconciliation. B. Choose one of the items that needs to be recorded in the company's books and make the journal entry.

Answer 1

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6	Total Assets
7	C
8	False.	It should be deducted from cost of land.
		Amount $
9	Bank balance as per books	4,750.00
	Add:
	Interest Earned	25.00
	Less:
	Service Charges	75.00
	NSF check	250.00
	Reconciled Cash Balance	4,450.00
	Journal Entry
	Account	Debit $	Credit $
	Bank	25.00
	Interest Earned		25.00