1. What is the purpose of Internal Control over Receivables? 2. What are Lines Of Credit? 3. Whatis the purpose of Inter...
1. What is the purpose of Internal Control over Receivables?
2. What are Lines Of Credit?
3. Whatis the purpose of Internal control over Cash?
4. How much Cash should a Business hold on hand?
A. December 31 Debit Credit
Supplies Expense…………………………………………. 100
Shop Supplies…………………………………………… 100
B 31 Insurance Expense………………………………………. 260
Unexpired or Prepaid insurance……………………… 260
C. 31 Depreciation Expense: Equipment……………………. 225
Accumulated depreciation: Equipment……… 225
D. 31 Wages expense………………………………………………… 1000
Wages Payable…………………………………………. 1000
E. 31 Income tax expense……………………………………………. 1500
Income taxes payable…………………………………. 1500
Adjusting entry to accrue income taxes owed but no paid as of Dec. 31
Homework Answers
1. Internal control are to control the things like whether things are done accordance with the prescribed policies or not.
In Accounts receivable(AR) also internal control is important. The company should have well documented policies for the AR, Whether the receivable invoices are properly maintained in the books of accounts or not. Whether the coding is made according to production description or not. Should ensure the AR paid as on legitimate time or note for the credit sales. Sometimes if we don't paid the amount whether we are allowances for the same are created or not. Whether outstanding receivable statement sent or not. Also sagregation of duties made or not. The person who deals with cash should be different who is booking the financial transactions.
2. Line of credit is a process where you can borrow from bank on incremental basis up to a certain limit. This is different for regular loan.A credit line can allow you to borrow in increments, repay it and can borrow again as long as the line remains open. You have to pay interest on borrowed funds when line is open for borrow funds.
This is like a account that let borrowers draw, repay and redraw from available funds.
3.Internal control on cash is important for preventing loss of cash or frauds from misutilizing the cash. Cash should be properly accounted and documented. There should be proper cash or bank reconciliation. Specific person should only have access to cash. Reconcile the cash with deposits and general ledger. Should have clear eye on uncleared checks and advances. Proper policies should be in place to maintain cash properly.
4. The cash handling differs from different companies. The company should have to decide what should they carry cash. Because money sitting idle creates opportunity cost. Also companies often make policies for withdrawing cash. Now days with technology increased no much cash kept in hand and most of the payments are done wire basis. But as per my knowledge liquied cash should be handeled less and maximize the online transactions because this is fast and secure.
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1. What is the purpose of Internal Control over Receivables? 2. What are Lines Of Credit? 3. Whatis the purpose of Inter...
Debit Balances Credit Balances Cash Accounts Receivable Prepaid Insurance Supplies 4,700 42,650 7,950 2,170 125,420 306,260...
Debit Balances Credit Balances Cash Accounts Receivable Prepaid Insurance Supplies 4,700 42,650 7,950 2,170 125,420 306,260 Land 153,250 Building Accumulated Depreciation--Building Equipment Accumulated Depreciation-Equipment Accounts Payable 150,720 109,150 13,370 7,590 325,800 Unearned Rent 16,630 361,430 Suzanne Emerson, Capital Suzanne Emerson, Drawing Fees Earned Salaries and Wages Expense Utilities Expense Advertising Expense Repairs Expense Miscellaneous Expense 215,410 47,350 25,300 19,160 6,870 970,590 970,590 The data needed to determine year-end adjustments are as follows: • Unexpired insurance at October 31, $5,330. •...
On December 1, 2022, Crane Distributing Company had the following account balances. Debit Credit Cash $6,300...
On December 1, 2022, Crane Distributing Company had the following account balances. Debit Credit Cash $6,300 Accumulated Depreciation-Equipment $2,200 Accounts Receivable 3,700 Accounts Payable 3,600 Inventory 11,100 Salaries and Wages Payable 1,000 Supplies 15,000 1,200 22,000 $44,300 Common Stock Retained Earnings Equipment 22,500 $44,300 During December, the company completed the following summary transactions. Dec. 6 Paid $1,600 for salaries due employees, of which $600 is for December and $1,000 is for November salaries payable. 8 Received $1.900 cash from customers...
Benner Hair Salon ADJUSTED TRIAL BALANCE March 31, 20.- DEBIT CREDIT ACCOUNT TITLE 1 Cash 4,440.00...
Benner Hair Salon ADJUSTED TRIAL BALANCE March 31, 20.- DEBIT CREDIT ACCOUNT TITLE 1 Cash 4,440.00 150.00 2 Supplies 3 Prepaid Insurance 2,354.00 10,507.00 1,000.00 4 Equipment 5 Accumulated Depreciation Equipment 6 Accounts Payable 240.00 13,449.00 7 A. Benner, Capital 8 A.Benner, Drawing 1,500.00 6,230.00 9 Salon Fees 1,036.00 10 Wages Expense 650.00 11 Rent Expense 12 Utilities Expense 130.00 65.00 13 Repair Expense 87.00 14 Miscellaneous Expenses 20,919.00 20,919.00 15 Totals Data for month-end adjustments are as follows: a....
Please use the correct accounts List of Accounts : Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated...
Please use the correct accounts
List of Accounts :
Accounts Payable
Accounts Receivable
Accumulated Depreciation-Buildings
Accumulated Depreciation-Equipment
Accumulated Depreciation-Trucks
Accumulated Depreciation-Vehicles
Advertising Expense
Buildings
Cash
Common Shares
Cost of Goods Sold
Depreciation Expense
Dividends Payable
Equipment
Income Tax Payable
Interest Expense
Interest Payable
Inventory
Land
Miscellaneous Expense
Notes Payable
Operating Expense
Other Expenses
Prepaid Insurance
Prepaid Rent
Rent Expense
Rent Revenue
Retained Earnings
Selling and Administrative Expenses
Supplies Expense
Wages Payable
Wages Expense
Advances to Employees
Bank Loan Payable
Deposits...
Print 3. Consider the following independent situations at December 31: Click the icon to view the...
Print 3. Consider the following independent situations at December 31: Click the icon to view the situations.) Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the joumal entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. On October 1, a business collected $3,000 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year's rent in advance. Al...
MOTO HOTEL Trial Balance May 31, 2017 Debit Credit Cash $ 2,333 Supplies 2,600 Prepaid Insurance...
MOTO HOTEL
Trial Balance
May 31, 2017
Debit
Credit
Cash
$ 2,333
Supplies
2,600
Prepaid Insurance
1,800
Land
14,833
Buildings
67,600
Equipment
16,800
Accounts Payable
$ 4,533
Unearned Rent Revenue
3,300
Mortgage Payable
33,600
Common Stock
59,833
Rent Revenue
9,000
Salaries and Wages Expense
3,000
Utilities Expense
800
Advertising Expense
500
$110,266
$110,266
Other data:
1.
Insurance expires at the rate of $450 per month.
2.
A count of supplies shows $1,070 of unused supplies on May
31.
3.
(a)...
July 31 Fees Earned 21,200 Wages Expense Office Rent Expense 2,940 2,550 1,375 Equipment Rent Expense...
July 31 Fees Earned 21,200 Wages Expense Office Rent Expense 2,940 2,550 1,375 Equipment Rent Expense Utilities Expense 1,215 Music Expense 3,610 Advertising Expense 1,500 Supplies Expense 925 Insurance Expense 225 Depreciation Expense 50 Miscellaneous Expense 1,855 Peyton Smith, Capital 4,955 DATE ACCOUNT POST. REF. DEBIT CREDIT July 31 Peyton Smith, Capital 1,750 Peyton Smith, Drawing 1,750 PS Music Post-Closing Trial Balance July 31, 2019 Debit Balances Credit Balances Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accumulated Depreciation Office...
Recount Tibles Debit Credit ABOS accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated mortisation Recounts...
Recount Tibles Debit Credit ABOS accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated mortisation Recounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense mortisation Expense Income Tax Expense Interest Expense Supplies Expense Totals OOOO OOOOOOO $106 $106 Transactions and events during 2018 (summarized in thousands of dollars) follow. a. Borrowed $11 cash on March 1 using a short-term note. b. Purchased land...
1. The COSO Framework describes 5 components of internal control. What is the purpose of internal...
1. The COSO Framework describes 5 components of internal control. What is the purpose of internal controls from a financial accounting perspective? To guarantee no fraud will occur in the organization. To help safeguard the company's assets. To help improve the accuracy and reliability of the accounting information. To prevent collusion. Group of answer choices 1 and 4 1, 2, and 3 2 and 3 2, 3, and 4 1, 2, 3, and 4 2. Which of the following is...
Chapter 3 The Adjusting Process147 Obj. 2, 3, 4, 5,6 and operated by Deloris PR 3-5A...
Chapter 3 The Adjusting Process147 Obj. 2, 3, 4, 5,6 and operated by Deloris PR 3-5A Adjusting entries and adjusted trial balances ebitSears Editing Company is a small editorial services company ow 900 sears. On January 31, 20Y1, the end of the current year, Sears Editing Company's accounting clerk prepared the following unadjusted trial balance: Sears Editing Company Unadjusted Trial Balance January 31, 20Y1 Credit Balances Debit Balances 7,500 ...38,400 7,200 1,980 112,500 150,250 Cash Prepaid Insurance Supplies.. Land Building...
Debit Balances Credit Balances Cash Accounts Receivable Prepaid Insurance Supplies 4,700 42,650 7,950 2,170 125,420 306,260 Land 153,250 Building Accumulated Depreciation--Building Equipment Accumulated Depreciation-Equipment Accounts Payable 150,720 109,150 13,370 7,590 325,800 Unearned Rent 16,630 361,430 Suzanne Emerson, Capital Suzanne Emerson, Drawing Fees Earned Salaries and Wages Expense Utilities Expense Advertising Expense Repairs Expense Miscellaneous Expense 215,410 47,350 25,300 19,160 6,870 970,590 970,590 The data needed to determine year-end adjustments are as follows: • Unexpired insurance at October 31, $5,330. •...
On December 1, 2022, Crane Distributing Company had the following account balances. Debit Credit Cash $6,300 Accumulated Depreciation-Equipment $2,200 Accounts Receivable 3,700 Accounts Payable 3,600 Inventory 11,100 Salaries and Wages Payable 1,000 Supplies 15,000 1,200 22,000 $44,300 Common Stock Retained Earnings Equipment 22,500 $44,300 During December, the company completed the following summary transactions. Dec. 6 Paid $1,600 for salaries due employees, of which $600 is for December and $1,000 is for November salaries payable. 8 Received $1.900 cash from customers...
Benner Hair Salon ADJUSTED TRIAL BALANCE March 31, 20.- DEBIT CREDIT ACCOUNT TITLE 1 Cash 4,440.00 150.00 2 Supplies 3 Prepaid Insurance 2,354.00 10,507.00 1,000.00 4 Equipment 5 Accumulated Depreciation Equipment 6 Accounts Payable 240.00 13,449.00 7 A. Benner, Capital 8 A.Benner, Drawing 1,500.00 6,230.00 9 Salon Fees 1,036.00 10 Wages Expense 650.00 11 Rent Expense 12 Utilities Expense 130.00 65.00 13 Repair Expense 87.00 14 Miscellaneous Expenses 20,919.00 20,919.00 15 Totals Data for month-end adjustments are as follows: a....
Please use the correct accounts
List of Accounts :
Accounts Payable
Accounts Receivable
Accumulated Depreciation-Buildings
Accumulated Depreciation-Equipment
Accumulated Depreciation-Trucks
Accumulated Depreciation-Vehicles
Advertising Expense
Buildings
Cash
Common Shares
Cost of Goods Sold
Depreciation Expense
Dividends Payable
Equipment
Income Tax Payable
Interest Expense
Interest Payable
Inventory
Land
Miscellaneous Expense
Notes Payable
Operating Expense
Other Expenses
Prepaid Insurance
Prepaid Rent
Rent Expense
Rent Revenue
Retained Earnings
Selling and Administrative Expenses
Supplies Expense
Wages Payable
Wages Expense
Advances to Employees
Bank Loan Payable
Deposits...
Print 3. Consider the following independent situations at December 31: Click the icon to view the situations.) Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the joumal entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. On October 1, a business collected $3,000 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year's rent in advance. Al...
MOTO HOTEL
Trial Balance
May 31, 2017
Debit
Credit
Cash
$ 2,333
Supplies
2,600
Prepaid Insurance
1,800
Land
14,833
Buildings
67,600
Equipment
16,800
Accounts Payable
$ 4,533
Unearned Rent Revenue
3,300
Mortgage Payable
33,600
Common Stock
59,833
Rent Revenue
9,000
Salaries and Wages Expense
3,000
Utilities Expense
800
Advertising Expense
500
$110,266
$110,266
Other data:
1.
Insurance expires at the rate of $450 per month.
2.
A count of supplies shows $1,070 of unused supplies on May
31.
3.
(a)...
July 31 Fees Earned 21,200 Wages Expense Office Rent Expense 2,940 2,550 1,375 Equipment Rent Expense Utilities Expense 1,215 Music Expense 3,610 Advertising Expense 1,500 Supplies Expense 925 Insurance Expense 225 Depreciation Expense 50 Miscellaneous Expense 1,855 Peyton Smith, Capital 4,955 DATE ACCOUNT POST. REF. DEBIT CREDIT July 31 Peyton Smith, Capital 1,750 Peyton Smith, Drawing 1,750 PS Music Post-Closing Trial Balance July 31, 2019 Debit Balances Credit Balances Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accumulated Depreciation Office...
Recount Tibles Debit Credit ABOS accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated mortisation Recounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense mortisation Expense Income Tax Expense Interest Expense Supplies Expense Totals OOOO OOOOOOO $106 $106 Transactions and events during 2018 (summarized in thousands of dollars) follow. a. Borrowed $11 cash on March 1 using a short-term note. b. Purchased land...
Chapter 3 The Adjusting Process147 Obj. 2, 3, 4, 5,6 and operated by Deloris PR 3-5A Adjusting entries and adjusted trial balances ebitSears Editing Company is a small editorial services company ow 900 sears. On January 31, 20Y1, the end of the current year, Sears Editing Company's accounting clerk prepared the following unadjusted trial balance: Sears Editing Company Unadjusted Trial Balance January 31, 20Y1 Credit Balances Debit Balances 7,500 ...38,400 7,200 1,980 112,500 150,250 Cash Prepaid Insurance Supplies.. Land Building...
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