Extra credit

True or False
1 The three elements that are almost always present when a fraud occurs are pressure, rationalization and concealment. False.
2 Requiring employees to take vacations is an example of a good internal accounting control feature. True.
3 Good internal accounting control requires that the person handling cash should also make any related journal entries so that responsibility for cash can be assigned to one person. False.
4 At the end of an accounting period, the “cash balance per bank statement” on that date is usually the proper cash amount to show on the balance sheet. False.
5 Outstanding checks are checks a company has written and recorded as cash disbursements that have not yet been presented to the bank for payment. True.
Bank Reconciliation
6.The following information pertains to Mateo Company:
Cash balance per bank statement

$21,525

Cash balance per general ledger

22,620

Bank service charge

60

Deposits in transit to bank

2,700

Outstanding checks

1,965

NSF check returned by bank

300

Mateo should show the following reconciled cash balance from the bank reconciliation on its balance sheet:
* $20,310
* $25,335
* $22,260
* $24,165
7.The following information pertains to Julianna Company:
Cash balance per bank statement

$28,700

Cash balance per general ledger

30,160

Bank service charge

80

Deposits in transit to bank

3,600

Outstanding checks

2,620

NSF check returned by bank

400

Julianna should show the followin...