2. 1. Sandra, Mary, and Suzie are a Dr. Works for Smith:

Sandra opens the envelopes and makes a triplicate list of all $$ received, and a copy goes to Mary, who deposits the receipts (cheques). Then Suzie takes a copy of the list and sends it to the accounts using the computerized accounting system.

He goes out 3 times a month and Dr. They eat an expensive lunch at Smith's expense. Mary signs the back of one of the received checks and goes to the bank to cash it. Suzie still records the payment as Misc. They feel justified because they're underpaid, and they think Dr. will never tell the difference.

1. a. Dr. Who in Smith's office should reconcile the bank statement?

b. Does bank reconciliation expose fraud?

c. What had to be done to reveal order?

d. Dr. What other internal controls should Smith implement?

2. Current Assets of Sandra Inc show the following:

Found - 25,000 $

Accounts Receivable $1,000,000

a. He wants to borrow $150,000 to buy the raw materials at a good price. What can he do to get the money quickly?

3. Record the following log entries during the first months of Joe's operations:

1. Performed various services for customers for $165.0000

$80,000 charged from customers on credit

Estimated bad debt expense will be $40,000

He decided that he would never pay off Mary's $3,000 debt.

4. Sandra writes Joe an "IOU" for services equal to $10,000. She declares that the full payment will be made in 6 months at 10% interest she.

1. a. What would be Joe's log entry to record the transaction?

b. How much interest will be paid at the end of 6 months?

Answer rating: 100% (QA)

a Dr Smith should reconcile the bank statement in order to ensure that all funds received are prop... View the full answer