CHAPTER 8
Fraud, Internal Control, and Cash
BRIEF EXERCISE 8-9
Mar. 20
Postage Expense ...........................................................
Freight-Out ......................................................................
Travel Expense ...............................................................
Cash Over and Short .....................................................
Cash .........................................................................
52
26
10
3
91
BRIEF EXERCISE 8-10
1.
A check provides documentary evidence of the payment of a specified
sum of money to a designated payee.
2.
A bank statement provides a double record of a depositor’s bank
transactions. It also is used in making periodic independent bank
reconciliations.
BRIEF EXERCISE 8-11
1.
2.
3.
4.
Outstanding checks—deducted from cash balance per bank.
Bank service charge—deducted from cash balance per books.
Collection of note by bank—added to cash balance per books.
Deposits in transit—added to cash balance per bank.
BRIEF EXERCISE 8-12
1.
The reconciling items per the books, items (2) and (3) above, will require
adjustment on the books of the depositor.
2.
The other reconciling items, deposits in transit and outstanding checks,
do not require adjustment by the bank. When these items reach the bank,
the bank balance will automatically adjust itself. These items have
already been recorded by the depositor so they do not need to make
an adjustment.
Copyright © 2013 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 11/e, Solutions Manual
(For Instructor Use Only)
8-1
BRIEF EXERCISE 8-13
Cash balance per bank ........................................................................
Add: Deposits in transit .....................................................................
Less: Outstanding checks .................................................................
Adjusted cash balance per bank...