Reference no: EM132789973
Problem 1: Which of the following is a sound internal control procedure for cash disbursements?
a.Making copies of purchase orders for the receiving department so they know how many items to be expected upon delivery.
b.Using presigned checks to facilitate payment within the cash discount period.
c.Comparing purchase requisitions, purchase orders, receiving reports, and invoices.
d.Requiring the signature of the purchasing department supervisor on checks.
Taylor Corp. identified the following data in preparing a bank reconciliation on October 31, 2017:
Bank statement balance $29,600
Taylor's book balance (before adjustments) ?
Outstanding checks $3,100
NSF check $300
Service charge $200
Deposits in transit $2,200
Interest earned on checking account $100
Problem 2: How much is Taylor's adjusted cash balance on October 31, 2017?
a.$29,100
b.$28,300
c.$28,700
d.$29,600