answer needs to be put in templates per chapter folder

Acct 1211_Student ID_Student Name_Assignment_7
Question 1
(20 marks)
A.
1. Bank error in recording a deposit for $ 377 should have been $ 773:
An addition to Bank balance by $396
2. Bank debit memo for service charge:
A subtraction from from book balance
3. Outstanding cheques:
An addition to book balance (issued by us)
4. Outstanding cheques from the previous month that are still outstanding:
An addition to book balance (issued by us)
5. Bank collection of a note receivable on Sew Safe’s behalf:
An addition to book balance
6. Deposits in transit for the current month:
A subtraction from book balance
7. Bank credit memo for interest earned on Sew Safe’s bank balance:
An addition to book balance
8. NSF cheques:
A subtraction from book balance (deposited by us)
9. Book error: Sew Safe credited cash for $ 5,000. The correct credit was $ 500:
A subtraction from book balance
10. Bank error: the bank decreased Sew Safe’s bank account for a cheque written by another bank customer:
An addition to bank balance
B. Following items that will result in an adjustment to the company’s records :
1) Bank debit memo for service charge:
A subtraction from from book balance
2) Outstanding cheques:
An addition to book balance (issued by us)
3) Outstanding cheques from the previous month that are still outstanding:
An addition to book balance (issued by us)
4) Bank collection of a note receivable on Sew Safe’s behalf:
An addition to book balance
5) Deposits in transit for the current month:
A subtraction from book balance
6) Bank credit memo for interest earned on Sew Safe’s bank balance:
An addition to book balance
7) NSF cheques:
A subtraction from book balance (deposited by us)
8) Book error: Sew Safe credited cash for $ 5,000. The correct credit was $ 500:
A subtraction from book balance
The other items are the Bank Errors that is why no adjustments in the Company’s Records.
A7-6     Assignment 7
ACCT 1211: Accounting I    A7-7
Question 2
(20 marks)
A. The missing internal control proceduresare as follows:
1. It is not correct that the organizers hires 16 year old son for the sale of tickets, because he is minor, secondly the person who sells the tickets and who handles the cash should be separate person. Otherwise there will always be chances of misappropriation of funds, frauds, omission and error.
2. It is not correct that the whole amount is deposited into bank once in a week. It will increase the chances of misappropriation and theft. To keep the large amount at custody is also not safe. It will also increase the cost of custody. Hence if the amount...