Reference no: EM133326773

Accounting - Cash Tally and Reconciliation
On June 30, 2022, you are required to perform a cash count of company's main cash drawer. Cashier, Mr. Acuña, hands you all funds and documents listed below. You perform cash count in your capacity as an external accountant.
CASH  
50  bills of $10,000
30  bills of $ 5,000

DOCUMENTS
a) Credit cards total: $ 200,000
b) Receipt to render account of Mr. Lopez who is in charge of Petty Cash, for $ 70,000 on August 25, 2022.
c) Check No. 22339 from Banco Nova for $ 120,000 protested on August 10, 2022.

OTHER BACKGROUND

1. Total income of previous day was $ 126,000.
2. Balance of cash account at date and time of Cash Count is $ 1,000.000.
3. Two $5,000 bills are found to be counterfeit.
4. Your boss orders you to carry out a cash count of Petty Cash in charge of Mr. Lopez, who, when summoned for cash count, presents you with following information:

- Cash                                                      $ 32,500
- Receipts for mobilization expenses  $   5,500
- Invoice for freight of debris                $ 10,000

IT IS REQUESTED:
a) Cash count to  Main Cash and Petty Cash.
b) Appropriate entries, considering that at same time Mr. Lopez's petty cash is rendered.
c) Indicate and explain three (3) internal control failures that have been detected on this exercise
d) Indicate actual and final cash balance, after recording accounting entries.