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In the Cases & Projects section at the back of Chapter 8 in your textbook, find and complete the following problems:
CP 8-6 Internal Controls
CP 8-8 Bank reconciliation and internal control
CP 8-9 Cash to monthly case expenses ratio
Be sure to complete all steps and sections of each problem and show all your work. Clearly label your answers, and make sure your responses to sections with pencil icons are in complete sentences.
CP 8 - 6
Internal controls
The following is an excerpt from a conversation between two salesclerks, Jean Moen and Sara Cheney. Jean and Sara are employed by Turpin Meadows Electronics, a locally owned and operated electronics retail store.
Jean:
Did you hear the news?
Sara:
What news?
Jean:
Neal and Linda were both arrested this morning.
Sara:
What? Arrested? You're putting me on!
Jean:
No, really! The police arrested them first thing this morning. Put them in handcuffs, read them their rights—the whole works. It was unreal!
Sara:
What did they do?
Jean:
Well, apparently they were filling out merchandise refund forms for fictitious customers and then taking the cash.
Sara:
I guess I never thought of that. How did they catch them?
Jean:
The store manager noticed that returns were twice that of last year and seemed to be increasing. When he confronted Neal, he became flustered and admitted to taking the cash, apparently more than $9,000 in just three months. They're going over the transactions of the last six months to try to determine how much Linda stole. She apparently started stealing first.
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