M5-4
Matching Cash Receipt Processes to Internal Control Principles
1
2
3
4
5
D
E
C
B
A
M5-12
Preparing a Bank Reconciliation
Updates to Bank Statement
Ending Cash Balance per
Bank Statement
Updates to Company's Books
$
195.00 Ending Cash Balance per books
Additions
Deposit in transit
$
305.00
$
$
50.00
5.00
$
250.00
Additions
$
Deductions
Outstanding Check 7
Check 3
$
$
Up to date ending cash balance
$
150.00
Deductions
25.00 NSF Check
70.00 Service Charge
250.00 Up to date ending cash balance
M5-13
Accounting for Unrecorded Items on Bank Reconciliation
A
Chk #4
Accounts Receivable
Cash
To record service charge by bank
B
Office Expenses
Cash
To record service charge by bank
DB
$ 50.00
$
5.00
CR
$ 50.00
$
5.00
M6-15
Computing and Interpreting the Gross Profit Percentage
Gross Profit
Percentage
40%
27.84%
34.71%
=
Gross Profit
= Net Sales
$
400
$
$
1,350
$
$
1,010.00
$
1,000
4,850
2,910
x
$
$
100
100
100
$
100
The following transacti
July
12
15
20
Aug.
23
25
ons were selected from the records of Evergreen Company:
Sold merchandise to Wally Butler, who paid the $1,000 purchase with cash. The goods cost
Evergreen Company $600.
Sold merchandise to Claudio’s Chair Company at a selling price of $5,000 on terms 3/10, n/30. The
goods cost Evergreen Company $3,500.
Sold merchandise to Otto’s Ottomans at a selling price of $3,000 on terms 3/10, n/30. The goods
cost Evergreen Company $1,900.
Collected payment from Claudio’s Chair Company from the July 15 sale.
Collected payment from Otto’s Ottomans from the July 20 sale.
M6-17
Determining the Cause of Increasing Gross Profit
Show your calculations and explain your conclusion
20-Nov
400 - 300 = $
25-Nov 4000-(3%)= 3880
2500 = $
= $
28-Nov 6000-(3%)= 5820
4000 = $
= $
29-Nov 5820/10=582
= $
$...