Chapter 5 This form should be delivered via intracompany mail to

subject Type Homework Help
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subject Words 1302
subject Authors Carl S. Warren

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149
E5–13
E5–14
The use of the voucher system is appropriate, the essentials of which are out-
lined below. (Although invoices could be used instead of vouchers, the latter
more satisfactorily provide for account distribution, signatures, and other signifi-
cant data.)
1. Each voucher should be approved for payment by a designated official only
2. The file for unpaid vouchers should be composed of 31 compartments, one
4. At the time of payment, all vouchers and supporting documents should be
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150
E5–15
To prevent the fraud scheme described, Torpedo must separate responsibilities
for related operations. As in the past, all service requisitions should be submitted
E5–16
E5–17
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151
E5–18 KAYCEE SISTERS INC.
Bank Reconciliation
July 31, 20Y9
Cash balance according to bank statement ................................. $18,330
E5–19
Increase in Cash
Balance Sheet
Statement of Assets =Liabilities +Stockholders’ Equity Income
Cash Flows Statement
Cash =Accounts Payable
Decrease in Cash
Balance Sheet
Statement of Assets =Liabilities +Stockholders’ Equity Income
Cash Flows Retained Statement
Cash = Earnings
Aug. 31. (50) (50) Aug. 31.
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152
E5–20
Balance Sheet
Statement of Assets =Liabilities +Stockholders’ Equity Income
Cash Flows Notes Retained Statement
Cash + Receivable = Earnings
E5–21
a.
WESTWIND CO.
Bank Reconciliation
August 31, 20Y6
Cash balance according to bank statement .................... $17,325
Add: Deposit in transit on August 31 ............................... 2,175
b. $15,310
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153
E5–22
A correct bank reconciliation would be as follows:
DAKOTA CO.
Bank Reconciliation
June 30, 20Y3
Cash balance according to bank statement: $ 22,900
Deduct outstanding checks:
No. 7715 .................................................... $1,450
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154
E5–23
a. The amount of cash receipts stolen by the sales clerk can be determined by
attempting to reconcile the bank account. The bank reconciliation will not re-
concile by the amount of cash receipts stolen. The amount stolen by the sales
clerk is $7,125, determined as shown below.
PALA CO.
Bank Reconciliation
April 30, 20Y1
Cash balance according to bank statement .......................................... $28,175
b. The theft of the cash receipts might have been prevented by having more
than one person make the daily deposit. Collusion between two individuals
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155
E5–24
a.
Balance Sheet
Statement of Assets =Liabilities +Stockholders’ Equity Income
Cash Flows Petty Statement
Cash +Cash
b.
Balance Sheet
Statement of Assets =Liabilities +Stockholders’ Equity Income
Cash Flows Office Retained Statement
Cash + Supplies = Earnings
(610) 325 (285)
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156
E5–25
a.
Balance Sheet
Statement of Assets =Liabilities +Stockholders’ Equity Income
Cash Flows Petty Statement
Cash + Cash
b.
Balance Sheet
Statement of Assets =Liabilities +Stockholders’ Equity Income
Cash Flows Office Retained Statement
Cash + Supplies = Earnings
(455) 175 (280)
Statement of Cash Flows Income Statement

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