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  3. Strayer ACC 557 Week 5 Chapter 7 (E7-5 E7-7 E7-14 P7-3A)

Strayer ACC 557 Week 5 Chapter 7 (E7-5 E7-7 E7-14 P7-3A)

E7-5: Listed below are five procedures followed by Parson Company. …………
Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. …………

E7-7: LaSalle Company established a petty cash fund on May 1, cashing a check for $100. The company reimbursed the fund on June 1 and July 1 with the following results. On July 10, LaSalle increased the fund from $100 to $150.00. …………
Prepare journal entries for LaSalle Company…………

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E7-14: Nayak Company has recorded the following items in its financial records. …………
The cash in bank is subject to a compensating balance of $5,000. The highly liquid investments had maturities of 3 months or less when they were purchased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years.
What amount should Nayak report as “Cash and cash equivalents” on its balance sheet? …………

P7-3A: On May 31, 2014, Terrell Company had a cash balance per books of $6,781.50. The bank statement from Home Town State Bank on that date showed a balance of $6,804.60. A comparison of the statement with the cash account revealed the following facts. …………
a) Prepare the bank reconciliation at May 31, 2014. …………
b) Prepare the necessary adjusting entries for Terrell Company at May 31, 2014…………

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