Verify Point 8 Ethics
Web page 335
Quick Examine 8-6
1 . For each from the following things, indicate whether its sum (i) affects the bank or book side of a lender reconciliation and (ii) represents an addition or a subtraction in a financial institution reconciliation:
a. Outstanding checks- affects your bank side to represent a subtraction in a lender reconciliation n. Debit memos- affects the book part and represents a subtraction in a bank getting back together c. NSF checks- affects the publication side to represent a subtraction in a traditional bank reconciliation d. Unrecorded deposits- affects the financial institution side and represents an addition in a financial institution reconciliation e. Interest on cash balance- affects publication side and represents an addition in a traditional bank reconciliation f. Credit memos- affects the book part and represents an addition in a bank getting back together g. Financial institution service charges- affects the book part and represents a subtraction in a bank getting back together
2 . Which in turn of the things in part you require an adjusting record entry? *The items partly 1 that want an adjusting journal entrance would be interest on money balance, NSF checks and bank support charges. Page 336
Physical exercise 8-3
Bemis Company is a rapidly growing start up business. The record-keeper, who had been hired one full year ago, kept town following the company's supervisor discovered that a big sum of money had disappeared over the past six months. A great audit unveiled that the record-keeper had written and signed many checks manufactured payable with her fiancГ© and after that recorded the checks as salaries expenditure. The fiancГ©, who cashed the bank checks but hardly ever worked to get the company, remaining town with all the record-keeper. Because of this, the company incurred an uninsured loss of $84, 000. Examine Bemis's inner control program and indicate which guidelines of inside control apparently have been overlooked.
*Bemis Organization should have founded responsibilities better for the company by giving their particular record-keeper a vacation after six months of support therefore permitting another staff to take more than that...