Reference no: EM132911256
Problem 1: The company paid $ 1,600 in rent for the space occupied by the office during this month. The journal entry is:
1- The Cash account is debited in $ 1,600 and the office space account is credited in $ 1,600
2- The Rent Expense account is debited for $ 1,600 and the Cash account is credited for $ 1,600
3- The office space account is debited in $ 1,600 and the Cash account is credited in $ 1,600
4- The cash account is debited in $ 1,600 and the Rent Expense account is credited in $ 1,600
Problem 2: An example of internal accounting control can be:
1- Allow employees to set their own work hours
2- Control the prices of health insurance in order to comply with government regulations on prices
3- Promote that managers donate their time to charities
4- Have each cashier carry out the cashier closing process and balance the balances at the end of the day