a) After completing Exercise TWO, what is the correct Adjusted balance per the Books? See circle on the printed exercise. Note: This adjusted balance should match the Adjusted Balance per the Bank. (10 points for correct answer. No partial credit). b) Does it make sense for the same person who prepares the daily cash deposits for the company to also perform the monthly bank reconciliation (in your answer, be sure to name any specific internal control procedures that may be applicable)? (Up to 5 points). c) Describe the different types of audit opinions. (Up to 5 points). EXERCISE TWO: BANK RECONCILIATION The June 30th, balance per bank statement was $6,100. The cash balance per books was $8,140. Outstanding checks amounted to $850, and deposits in transit were $2,500. The bank statement contained an NSF check for $550, a service charge for $25, and a debit memo for direct payment of the telephone bill of $175. In addition, it was discovered that a check to pay for utilities was correctly written and paid by the bank for $150, but was recorded on the books as $510. 1) Prepare a bank reconciliation at June 30th. 2) Prepare any necessary journal entries. Req. 1 Req. 2 BANK: Balance, June 30 Add: Less: Bank Reconciliation June 30th Adjusted Balance, June 30 $ BOOKS: Balance, June 30 $ Add: Less: Adjusted Balance, June 30 Date June 30 30 30 30 Journal Entries Accounts Debit Credit ACCT 2021 - CHAPTER 6-PETTY CASH Version 5.1 Instructions: Use the T-accounts to complete the following petty cash problem. If you get stuck, review the examples in the text that describe an imprest basis system. Try not to look at the solution on the next page. Swenson Co. established a petty cash fund of $100 on March 1st. On March 31st the fund contained cash of $13 and receipts for the following: Postage Fuel Office Supplies Total $ 29 33 24 $ 86 On April 1st, the petty cash fund was replinished. Record the following: 1) The entry to establish the fund on March 1st. 2) The entry to recognize the disbursements and replenish the petty cash fund to a $100 on April 1. Cash 100 (1) 87 (2) Petty Cash Office Supplies 100 (1) 24 (2) Postage Expense Fuel Expense Cash Short/Over 29 (2) 33 (2) 1 (2) NOTE: The Petty Cash account always maintains a balance of $100 (in this example) even though the actual balance of cash in the fund may differ throughout the month. Date 1-Mar Account Petty Cash Debit Credit 100 Cash 100 1-Apr Office Supplies 24 Postage Expense 29 Fuel Expense 32 Cash/Short Over 1 Cash 87