1. Connie Chaudri performs all the accounting tasks for Discount Sales, a small merchandising firm. Finding herself in financial difficulty, she devises the following plan to steal money from the business. She believes she can, at any time, remove an amount of cash from the daily bank deposit and replace the cash with a cheque received in the mail from a customer. She will not include the cheque in her list of cheques received for the day. To prevent the customer from complaining about an incorrect amount owing, Connie will make the following general journal entry for the amount of the cheque and post it to the all ledger accounts affected: Particulars Sales returns and allowances Date P.R. Debit Credit XX Accounts Receivable XX (a) Would the company's general ledger balance? Explain. (b) Would the control account balance with the schedule of accounts receivable? Explain. (c) Is Connie likely to get caught? Explair.

1. Connie Chaudri performs all the accounting tasks for Discount Sales, a small merchandising firm. Finding herself in financial difficulty, she devises the following plan to steal money from the business. She believes she can, at any time, remove an amount of cash from the daily bank deposit and replace the cash with a cheque received in the mail from a customer. She will not include the cheque in her list of cheques received for the day. To prevent the customer from complaining about an incorrect amount owing, Connie will make the following general journal entry for the amount of the cheque and post it to the all ledger accounts affected: Particulars Sales returns and allowances Date P.R. Debit Credit XX Accounts Receivable XX (a) Would the company's general ledger balance? Explain. (b) Would the control account balance with the schedule of accounts receivable? Explain. (c) Is Connie likely to get caught? Explair.

Name: can you please help with a, b, and c using the information in the phot
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: can you please help with a, b, and c using the information in the photo. this is for my accounting homework 1. Connie Chaudri performs all the accounting tasks for Discount Sales, a small merchandisingfirm. Finding herself in financial difficulty, sh

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.5MCP

See similar textbooks

Similar questions

Southern Company pays its employees weekly by issuing checks on its regular bank account. The owner thinks it would be too much trouble to have a second checking account. Explain to the owner why having this account might be worth the additional effort.
Describe the who, what, where, and how of the following scenario: A customer gives his purchase to a sales clerk, who enters the sale in a cash register and puts the money in the register drawer. At the end of the day, the sales clerk gives the cash and the register tape to the cashier.
An unhappy customer just returned $50 of the items he purchased yesterday when he charged the goods to the companys store credit card. Which special journal would the company use to record this transaction? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
Natalie decides that she cannot afford to hire John to do her accounting. One way that she can ensure that her cash account does not have any errors and is accurate and up-to-date is to prepare a bank reconciliation at the end of each month.Natalie would like you to help her. She asks you to prepare a bank reconciliation for June 2021 using the following information. GENERAL LEDGER—COOKIE CREATIONS INC. Cash Date Explanation Ref Debit Credit Balance 2021 June 1 Balance 2,657 1 750 3,407 3 Check #600 625 2,782 3 Check #601 95 2,687 8 Check #602 56 2,631 9 1,050 3,681 13 Check #603 425 3,256 20 155 3,411 28 Check #604 297 3,114 28 110 3,224 PREMIER BANKStatement of Account—Cookie Creations Inc.June 30, 2021 Date Explanation Checks and…
You are the auditor for Konerko’s Office Supply Store, which is opening for business next week. The store owner has established all the controls you have recommended for ensuring that sales are recorded properly and cash is accounted for. The owner has heard from other small business owners that employees often used returned goods as means of skimming money from the register.Required:a. How might an employee use returned goods to skim money from the register?b. What controls would you recommend to prevent or detect fraudulent returns?c. What audit procedures might you perform to detect fraudulent returns?
Al Kamyani have business in Nizwa, Oman. The business was maintaining only one Cash account. The Chief accountant used to make all the Cash payments. As the business grew the number of cash payment of small amounts increased and it became difficult for the Chief Accountant to maintain the cash account. On 1st September 2021 The Chief Accountant started a Petty cash fund and appointed you as a petty cashier. He gave a cheque for RO 600 to keep as Petty cash fund. During the month of September the receipts were RO 150 petrol, RO 90 office stationery, RO 160 staff welfare and RO 60 travelling and there was RO 125 left in the petty cash box. In the month of October the receipts were RO 135 petrol, RO 75 office stationery, RO 185 staff welfare and RO 75 travelling and there was RO 150 left in the petty cash box. The fund amount was raised to RO 700 from the end of the month. You are required to answer the below questions based on the above case The amount of cash payments made in October…
Al Kamyani have business in Nizwa, Oman. The business was maintaining only one Cash account. The Chief accountant used to make all the Cash payments. As the business grew the number of cash payment of small amounts increased and it became difficult for the Chief Accountant to maintain the cash account. On 1st September 2021 The Chief Accountant started a Petty cash fund and appointed you as a petty cashier. He gave a cheque for RO 600 to keep as Petty cash fund. During the month of September the receipts were RO 150 petrol, RO 90 office stationery, RO 160 staff welfare and RO 60 travelling and there was RO 125 left in the petty cash box. In the month of October the receipts were RO 135 petrol, RO 75 office stationery, RO 185 staff welfare and RO 75 travelling and there was RO 150 left in the petty cash box. The fund amount was raised to RO 700 from the end of the month. You are required to answer the below questions based on the above case The shortage or overage in the petty cash…
Assume that Sohar Paper Cores LLC sold goods to its customer and received the check of OMR 5000. The cashier immediately entered in the cash book and deposited check in the bank. After 2 days the company received the bank statement in which the deposited check amount not yet recorded. Therefore while preparing the Bank Reonciliation statement, what adjustment the accountant will do? Choose the correct answer from the following given options. a. Less OMR 5000 from the bank statement balance b. Add OMR 5000 to bank statement balance C. Add OMR 5000 to the cash book balance d. Less OMR 5000 from the cash book balance
Dogtopia sells pet supplies and food and handles all sales with a cash register. The cash register displays the amount of the sale. It also shows the cash received and any change returned to the customer. The register also produces a customer receipt but keeps no internal record of the transactions. At the end of the day, the clerk counts the cash in the register and gives it to the cashier for deposit in the company bank account. Requirements 1. Identify the internal control weakness over cash receipts. 2. What could you do to correct the weakness?
Use legal basis in answering M signed a blank check and put it in his office table. B stole it and filled up the amount and wrote his name as payee. B, negotiated the check to C who paid value therefor in good faith. C, presents it for payment to the drawee bank, but the bank refused to pay due to the stop payment order previously given by A. Can C, collect from M the amount of the check? Can C run after B?
Applying internal control over cash receipts Sandra Kristof sells furniture for McKinney Furniture Company. Kristof is having financial problems and takes $650 that she received from a customer. She rang up the sale through the cash register. What will alert Megan McKinney, the controller, that something is wrong?
The A/P clerk of a company writes the checks for vendors, and the controller signs the checks. The A/P clerk has devised a plan to give herself a raise. She creates a new vendor for her friend's business and creates two purchase orders for random car detailing services for $75 and $70. She writes the checks to pay these new vendors knowing the controller will only pay close attention to checks over $100. She delivers the checks to her friend to deposit in his bank account, and then he writes her a personal check for the full amount of $145. Eventually, what will be the effect of her actions