Reference no: EM133060843
Questions -
Q1) Journalize the following transactions under perpetual inventory system.
Q) Purchased 10 keyboards at a cost of 25 per package for a total of $250.
Q) Sold three customers for cash to a customer at $50 each for a total of $150.
Q) Allowed one customer to return one keyboard for a cash refund of $50.
Q) Returned one damaged keyboard from the package worth of $50.
Q2) In May 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare journal entries for the following transaction:
On July 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $125, Supplies $368, Postage Expense $325, Repairs and Maintenance Expense $99, Miscellaneous Expense $259. The cash on hand currently was $38.
Q3) Western Flyers received its bank statement for the month of July 2019 with an ending balance of $11,065.00 whereas the cash book balance for Western Flyers is $12875.
Western Flyers determined that check #598 for $125.00 and check #601 for $375.00 were both outstanding.
Also, a $7,500.00 deposit for July 30th was in transit as of the end of the month.
Big Bucks Bank also collected an amount of $5,300 from a client of Western Flyer as payment of a note ($5,000) and interest ($300) earned on a note.
Big Bucks Bank charged Flyers a $15.00 fee for the collection service and $20 for issuance of 10 check books.
A check for $75.00 from Colin Abraham, a client, was returned with the bank statement marked "NSF".
Q4) What is an example of rationalization as one of the three elements causing a person to commit fraud?
Q5) What is the difference between perpetual and periodic inventory system?