Anna Korte is confused about the lack of agreement between the cash balance per books and the balance per bank. Explain the causes for the lack of agreement to Anna, and give an example of each cause.
Answer to relevant QuestionsHeather Kemp asks your help concerning an NSF check. Explain to Heather (a) What an NSF check is, (b) How it is treated in a bank reconciliation, (c) Whether it will require an adjusting entry. Rosenquist Company has the following internal control procedures over cash receipts. Identify the internal control principle that is applicable to each procedure.1. All over-the-counter receipts are entered in cash ...At August 31, Pratt Company has a cash balance per books of $9,500 and the following additional data from the bank statement: charge for printing Pratt Company checks $35, interest earned on checking account balance $40, and ...At Danner Company, checks are not prenumbered because both the purchasing agent and the treasurer are authorized to issue checks. Each signer has access to unissued checks kept in an unlocked file cabinet. The purchasing ...The cash records of Dawes Company show the following four situations.1. The June 30 bank reconciliation indicated that deposits in transit total $920. During July, the general ledger account Cash shows deposits of $15,750, ...
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