Question:

Internal control elements

Identify each of the following as relating to (a) the control environment, (b) control  pro- cedures, or (c) information and communication.

1. Management's philosophy and operating style

2. Report of company's conformity with environmental laws and regulations

3. Separating related operations

Question:

Internal control elements
Identify each of the following as relating to (a) the control environment, (b) control procedures, or (c) monitoring.

1. Hiring of external auditors to review the adequacy of controls

2. Personnel policies

3. Safeguarding inventory in a locked warehouse

Question:

Bank reconciliation
The following data were gathered to use in reconciling the bank account of Eves Company:
•Balance per bank $13,450
•Balance per company records 11,655
•Bank service charges 45
•Deposit in transit 3,000
•NSF check 1,800
•Outstanding checks 6,640

a. What is the adjusted balance on the bank reconciliation?

b. Journalize any necessary entries for Eves Company based on the bank reconciliation.

Question:

Bank reconciliation
The following data were gathered to use in reconciling the bank account of Conway Company:
•Balance per bank                 $23,900
•Balance per company records    8,700
•Bank service charges                   50
•Deposit in transit                    5,500
•Note collected by bank with $450 interest 9,450
•Outstanding checks               11,300

a. What is the adjusted balance on the bank reconciliation?

b. Journalize any necessary entries for Conway Company based on the bank reconciliation.

Question:

Bank reconciliation
Identify each of the following reconciling items as:

(a) an addition to the cash balance according to the bank statement,

(b) a deduction from the cash balance according to the bank statement,

(c) an addition to the cash balance according to the company's records, or

(d) a deduction from the cash balance according to the company's records. (None of the transactions reported by bank debit and credit
memos have been recorded by the company.)

1. Bank service charges, $30.
2. Check of a customer returned by bank to company because of insufficient funds, $1,750.
3. Check for $390 incorrectly recorded by the company as $930.
4. Check for $50 incorrectly charged by bank as $500.
5. Deposit in transit, $9,700.
6. Outstanding checks, $33,110.
7. Note collected by bank, $24,600.