Internal Control And Accounting For Assets
Complete three accounting exercises in which you prepare a bank reconciliation and journal entries and compute asset depreciation using a provided worksheet.
All business organizations, whether a large corporation or sole proprietorship, need to maintain internal control over the assets belonging to the business. Managers and owners place a high priority on internal control systems because they can prevent avoidable losses, help managers plan operations, and monitor organization performance
This assessment consists of three accounting exercises. The exercises are provided in the Internal Control and Accounting for Assets Worksheet. Use this worksheet to record and submit your solutions for Exercises 3-1, 3-2, and 3-3. Accounting homework help
In addition, practice problems for each exercise are provided in the Assessment 3 Practice Problems Worksheet. The worksheet and answer key can be found in the Capella Resources activity of this assessment and are optional.
The Assessment 3 Context document contains important information related to internal controls and accounting for assets addressing the following topics:
- Cash and Cash Equivalents.
- Long-Term Assets.
The following resource is required to complete the assessment.
Click the link provided to view the following resource:
- Internal Control and Accounting for Assets Worksheet [DOCX].
Submit your Internal Control and Accounting for Assets Worksheet for faculty evaluation. Please do not submit completed practice problems with your assessment. Accounting homework help
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
- Competency 2: Apply accounting principles as the language of business.
- Prepare a bank reconciliation.
- Prepare bank reconciliation journal entries.
- Prepare accounts receivable journal entries.
- Competency 3: Communicate the effects of business events on an organization’s financial structure.
- Compute plant asset depreciation using two different methods.
Financial Accounting Principles
Assessment 3: Internal Control and Accounting for Assets Worksheet
Use this worksheet to complete the following three exercises for Assessment 3. Refer to the instructions in the course for submitting your assessment.
The Scheiffer Company’s most recent bank statement and book balances of cash reconciliations were completed on September 30, 2012. Two checks were reported outstanding: check #6798 for $1135.50 and check #6794 for $524.00. The following information is available for the October 31, 2012 reconciliation.
Section of the October 31 Bank Statement
|Previous Balance||Total Checks & Deposits||Total Deposits & Credits||Current Balance|
|Checks and Debits||Deposits and Credits||Daily Balance|
From Scheiffer’s Accounting Records
|Cash Receipts Deposited|
|Check No.||Cash Credit|
Check #7005 was drawn correctly for $1985.95 to pay for office equipment. The recordkeeper recorded it as a debit for Office Equipment and a credit to Cash for $1955.95, but misread the amount of the check, which was $1985.95. The non-sufficient funds check for a $605.75 account payment was received from a customer, A. B. Fransen. The company has not yet recorded the returned check. The credit memo is the bank’s collection on a $1450.00 note and shows the deduction of a $20.00 collection fee. The company has not recorded the collection or the fee. Accounting homework help
Based on the information provided, complete the following tasks:
- Prepare an October 31, 2012, bank reconciliation for the Scheiffer Company.
October 31, 2012
[Create the bank reconciliation here.]
- Make the necessary journal entries to adjust the book balance of cash to the reconciled balance.
[Create the journal entries here.]
- For distinguished performance, provide three possible reasons why some of the numbered checks in the sequence are missing from the bank statement.
Prepare journal entries for the Russell Company’s 2011 and 2012 transactions summarized below and the company’s year-end adjustments to Bad Debts Expense. Round off all amounts to the nearest dollar.
Note: The company uses a perpetual inventory system.
The Russell Company began operations on January 1, 2011, and completed several transactions that involved credit sales, accounts receivable collections, and bad debts.
- Sold merchandize that cost $1,350,000, on credit, for $1,575,000. Terms n/30.
- Wrote off $18,100 of accounts receivable that were uncollectible.
- Received cash in the amount of $822,500 as accounts receivables payments.
- In performing year-end account adjustments, the company estimated that 2 percent of accounts receivables will not be collectible.
[Create the 2011 journal entries here.]
- Sold merchandize that cost $1,325,000, on credit, for $1,592,000. Terms n/30.
- Wrote off $24,500 of accounts receivable that were uncollectible.
- Received cash in the amount of $1,428,300 as accounts receivables payments.
- In performing year-end account adjustments, the company estimated that 2 percent of accounts receivables will not be collectible. Accounting homework help
[Create the 2012 journal entries here.]
On January 1, the Hanover Beverage Company replaced the palletizing machine on one of its juice lines. The cost of the machine was $195,000. The machine’s expected life is five years or 480,000 units, and its estimated salvage value is $19,500.
The following numbers of units were produced over the next four years:
At the end of the 4th year, the total number of units produced exceeded expectations.
Note: Depreciation cannot drop below its estimated salvage value.
Determine the depreciation on the palletizer for each of the four years, as well as the combined total for all four years. Use two of the following three methods of depreciation. For distinguished performance, use all three methods. Round your answers to the nearest dollar.
[Provide the depreciation calculations here.] Accounting homework help