- # Financial Accounting BMBA 140 Assignment #5 Name (first and last name): ________________________ PART I — Cash Process (10 points) Your client who owns a farm stand, has come in requesting you to...

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Financial Accounting BMBA 140 Assignment #5
Name (first and last name): ________________________
PART I — Cash Process (10 points)
Your client who owns a farm stand, has come in requesting you to review their cash process, to identify if there are any gaps in their cash handling process. If you can please identify 5 problems in the cash process na
ative and identify a potential solution to address the issues.
Na
ative:
The farm stand does not have a cash register but uses an old toolbox instead that does not lock. There are no receipts offered to customers, even if they ask for one. At the end of each business day - no one counts the total cash on hand from the days sales. Everyone has access to the toolbox and knows that it is stored below the service counter at night. Cash is gathered once a week by the manager, who also completes the bank reconciliation, generally they complete the bank rec several months late.
Template:
    #
    Control Weakness
    Potential Solution
    1
    
    
    2
    
    
    3
    
    
    4
    
    
    5
    
    
PART I — Bank Reconciliation and Related Entries (17 points)
Instructions: Your client requested that you assist them in preparing their October bank reconciliation as they are uncomfortable based on the feedback you have provided on their cash controls - please prepare the bank reconciliation and co
elated journal entries based on the following information:
Bank Balance, October 31, 2021: $15,368.50
Book Balance, October 31, 2021: $15,548.00
Notes:
1) The bank statement included an NSF charge of $105.00 for a cheque received from a customer.
2) The bank statement included an inco
ect charge of $15.00 to the companies account for preparing their bank reconciliation, a service which was not provided by the bank.
3) Outstanding cheques as of October 31, 2021, were $118.00.
4) $3,250 was received into the company’s bank account on October 31, 2021 for a line of credit extended by the bank.
5) Cash sales of $12.50 were inco
ectly recorded as $1,250 by the company’s bookkeeper.
6) The bank statement included a charge (debit memo) of $205.00 for the monthly bank services.
7) Deposits in transit as of October 31, 2021, were $1,985.00.
Bank Reconciliation Template:
    (name)
    (statement)
    (date)
    
    
    
    Add:
    
    
    
    
    
    
    
    
    Less:
    
    
    
    
    
    
    
    
    Add:
    
    
    
    
    
    
    
    
    Less:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
Journal Entry Template: note – please ignore account numbers as none have been provided.
    Entry #
    Date
    Account Name
    Debit or Credit
    Amount
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
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