Homework

Chapter $7$ Written Worksheet

$($Must be handwritten, no typed submissions$)$

Sarbanes$-$Oxley, Internal Control, and Cash

Cash Receipts$/$Sales Journal Entry Exercise

Instructions: Provide the journal entry to record cash receipts and sales.

The actual cash in the register at the end of the day was $$18,253\mathrm{.}79($including the change fund$),$ and the amount indicated by the cash register total was $$18,178\mathrm{.}31.$ The company maintains a $$100$ change fund at all times.

Bank Reconciliation Exercise

a$.$ Prepare a bank reconciliation for Cartwright Company as of October $31,$ using the following information:

Cash balance on October $31$ bank

$$11,410$

statement.

Cash account balance in general ledger

Deposit made on October $31,$ not

recorded on bank statement

$1,865$

Note collected by bank $($ $$1,200$ plus

$1,260$

$$60$ in interest$).$

Outstanding checks: No$.567,$ $$800$;

No$.569,$$$452$

$1,252$

Debit memorandum from bank for a

NSF check written by J$.$ Lane in

payment of his account

$100$

n addition, Cartwright recorded Check No$.548$ written for $$152$ in payment of the October tility bill as $$125$ in the cash payments journal.

b$.$ Prepare the necessary Journal Entries from the bank reconciliation