Fraud, Internal Control, and Cash

Financial Accounting
IFRS 5th Edition
Weygandt ● Kimmel
Chapter 7
Fraud, Internal Control, and Cash

This slide deck contains animations. Please disable animations if they cause issues with your device.
Copyright © John Wiley & Sons, Inc.

Chapter Outline
Learning Objectives
LO 1 Define fraud and the principles of internal
control.
LO 2 Apply internal control principles to cash.
LO 3 Identify the control features of a bank account.
LO 4 Explain the reporting of cash.

Learning Objective 1
Define Fraud and the Principles of
Internal Control.
Copyright © John Wiley & Sons, Inc. LO 1

Fraud Triangle
Fraud
Dishonest act by an employee that results in personal
benefit to the employee at a cost to the employer.
Illustration 7.1: Fraud triangle

Fraud and Internal Control
Internal Control
Purposes of internal control:
1. Safeguard assets.
2. Enhance accuracy and reliability of accounting
records.
3. Increase efficiency of operations.
4. Ensure compliance with laws and regulations.

Internal Control Review Question
Internal control is used in a business to enhance the
accuracy and reliability of its accounting records and to:
a. safeguard its assets.
b. prevent fraud.
c. produce correct financial statements.
d. deter employee dishonesty.

Internal Control – Solution
Internal control is used in a business to enhance the
accuracy and reliability of its accounting records and to:
a. safeguard its assets. (Correct)
b. prevent fraud.
c. produce correct financial statements.
d. deter employee dishonesty.

Internal Control Components
Five Primary Components:
1. Control environment.
2. Risk assessment.
3. Control activities.
4. Information and communication.
5. Monitoring.

Establishment of Responsibility
• Control is most effective
when only one person is
responsible for a given task
• Establishing responsibility
often requires limiting
access only to authorized
personnel, and then
identifying those personnel

Segregation of Duties
• Different individuals should be
responsible for related activities
• Responsibility for record-keeping
for an asset should be separate
from physical custody of that asset

Documentation Procedures
• Companies should use
prenumbered
documents, and all
documents should be
accounted for
• Employees should
promptly forward source
documents for
accounting entries to the
accounting department

Physical Controls
Illustration 7.2: Physical controls

Independent Internal Verification
• Records periodically
verified by an
employee who is
independent
• Discrepancies
reported to
management
Illustration 7.3: Comparison of segregation of duties principle with

independent internal verification principle
Human Resource Controls
• Bond employees who
handle cash
• Rotate employees’ duties
and require employees to
take vacations
• Conduct thorough
background checks

Principles of Internal Control Review
Question
The principles of internal control do not include:
a. establishment of responsibility.
b. documentation procedures.
c. management responsibility.
d. independent internal verification.

Principles of Internal Control –
Solution
The principles of internal control do not include:
b. documentation procedures.
c. management responsibility. (Correct)
d. independent internal verification.

Limitations of Internal Control
• The human element
• The size of the business
The costs should not exceed the benefits

Helpful Hint
Controls may vary with the risk level of the activity. For example,
management may consider cash to be high risk and maintaining
inventories in the stockroom as lower risk. Thus, management
would have stricter controls for cash.

DO IT! 1: Control Activities
Identify which control activity is violated and explain how the

situation creates an opportunity for a fraud.
1. The person with primary responsibility for reconciling the
bank account and making all bank deposits is also the
company’s accountant.
2. Wellstone Company’s treasurer received an award for
distinguished service because he had not taken a vacation
in 30 years.
3. In order to save money spent on order slips and to reduce
time spent keeping track of order slips, a local
bar/restaurant does not buy prenumbered order slips.

DO IT! 1: Control Activities – Solution
1. Company accountant: • Treasurer, who manages the

company’s cash, might embezzle
• Violates the control activity of cash and use his position to conceal
segregation of duties the theft
• Recordkeeping should be separate
3. No prenumbered order slips:
from physical custody
• Violates the control activity of
• Employee could embezzle cash and
documentation procedures
make journal entries to hide the
theft • If prenumbered documents are not
used, then it is virtually impossible
2. Award for not taking vacation: to account for the documents
• Violates the control activity of • An employee could write up a
human resource controls dinner sale, receive cash from the
• Key employees must take vacations customer, then throw away the
order slip and keep the cash

Apply Internal Control Principles to
Cash.

Cash Controls
Cash Receipts Controls
• Establishment of Responsibility:
o Only designated personnel are authorized to handle
cash receipts
• Segregation of Duties: Different individuals
o Handle cash
o Record cash receipts

Internal Controls to Cash Receipts
Illustration 7.4: Application of internal control principles to cash receipts

Cash Controls – Documentation &
Physical
o Documentation Procedures:
▪ Remittance advice (mail receipts)
▪ Cash register tapes, point-of-sale system reports
▪ Deposit slips or confirmations
o Physical Controls
▪ Store cash in safes
▪ Limit access to storage areas
▪ Use cash registers or point-of-sale terminals
▪ Deposit cash daily

Cash Receipt Controls – Verification
& HR
o Independent Internal Verification
▪ Supervisors count cash receipts daily
▪ Accountant compares total receipts to bank
deposits daily
o Human Resource Controls
▪ Bond personnel who handle cash
▪ Require employees to take vacations
▪ Conduct background checks

Over-the-Counter Receipts
Illustration 7.5: Control of over-
the-counter receipts

Electronic Receipts
• Electronic funds transfer (EFT) uses wire,
telephone, or computers to transfer funds from one
location to another
• Because EFT does not involve employees handling
cash, it reduces some of the opportunities for
employee theft
• However, an employee might redirect funds into a
personal account and hide the theft with
fraudulent accounting

Check Receipts
• Should be opened by two people, a list prepared,
and each check endorsed “For Deposit Only”
• Each mail clerk signs the list to establish
responsibility for the data
• Original copy of the list, along with checks, is sent
to cashier’s department
• Copy of list is sent to accounting department for
recording, clerks keep a copy

Cash Receipt Controls Review
Question
Permitting only designated personnel such as cashiers
to handle cash receipts is an application of the
principle of:
a. segregation of duties.
b. establishment of responsibility.
c. independent internal verification.
d. human resource controls.

Cash Receipt Controls – Solution
Permitting only designated personnel such as cashiers
to handle cash receipts is an application of the
principle of:
a. segregation of duties.
b. establishment of responsibility. (Correct)
c. independent internal verification.
d. human resource controls.

DO IT! 2: Control over Cash Receipts
L. R. Cortez is concerned about the control over cash receipts in

his fast-food restaurant, Big Cheese. The restaurant has two
cash registers. At no time do more than two employees take
customer orders and enter sales. Work shifts for employees
range from 4 to 8 hours. Cortez asks your help in installing a
good system of internal control over cash receipts.

DO IT! 2: Control over Cash Receipts –
Solution
• A separate cash register drawer should be assigned to each employee
at the start of each work shift, with register totals set at zero.
• Each employee should have access to only the assigned register
drawer to enter all sales.
• Each customer should be given a receipt.
• At the end of the shift, the employee should do a cash count. A
separate employee should compare cash count with register tape (or
point-of-sale records) to be sure they agree.
• Cortez should install an automated point-of-sale system that would
enable the company to compare orders entered in the register to
orders processed by the kitchen.

Cash Disbursement Controls
Generally, internal control over cash disbursements is
more effective when companies pay by check or
electronic funds transfer (EFT) rather than by cash.
One exception is payments for incidental amounts
that are paid out of petty cash.

Internal Controls to Cash Disbursements
Illustration 7.6: Application
of internal control principles
to cash disbursements

Cash Disbursements Controls
• Establishment of Responsibility
o Only designated personnel are authorized to sign
checks (treasurer) and approve vendors
• Segregation of Duties
o Different individuals approve and make payments
o Check-signers do not record disbursements

Cash Disbursement - Documentation
Documentation Procedures
• Use prenumbered checks and account for them in
sequence
• Each check must have an approved invoice
• Require employees to use company credit cards for
reimbursable expenses
• Stamp invoices “paid”

Cash Disbursement – Physical &
Verification
• Physical Controls
o Store blank checks in safes, with limited access
o Print check amounts by machine in indelible ink
• Independent Internal Verification
o Compare checks to invoices
o Reconcile bank statement monthly

Cash Disbursement – HR Controls
Human Resource Controls:
• Bond personnel who handle cash
• Require employees to take vacations
• Conduct background checks

Cash Disbursement Controls Review
Question
The use of prenumbered checks in disbursing cash is
an application of the principle of:
b. segregation of duties.
c. physical controls.
d. documentation procedures.

Cash Disbursement Controls –
Solution
The use of prenumbered checks in disbursing cash is
an application of the principle of:
b. segregation of duties.
c. physical controls.
d. documentation procedures. (Correct)

Voucher System Controls
• A network of approvals by authorized individuals,
acting independently, to ensure all disbursements
by check are proper
• A voucher is an authorization form prepared for
each expenditure

Petty Cash Fund
Petty Cash Fund - Used to pay small amounts
Involves:
1. establishing the fund
2. making payments from the fund
3. replenishing the fund

Establishing the Petty Cash Fund
Illustration: If Zhū Ltd. decides to establish a NT$3,000
fund on March 1, the general journal entry is :
March 1 Petty Cash 3,000

Cash 3,000

Petty Cash Payments
• Management usually limits the size of expenditures
• Does not permit use of fund for certain types of
transactions
• Payments are documented on a prenumbered
receipt
• Signatures of both the custodian and the individual
receiving payment are required on the receipt
• Supporting documents should be attached to
receipt

Making Payments From Petty Cash
• Custodian keeps receipts in petty cash box until
fund is replenished
• Sum of receipts and money in fund should equal
the established total at all times
• Management can (and should) make surprise
counts at any time to determine the correctness of
the fund

Petty Cash Receipt
Illustration 7.7: Petty cash receipt

Replenishing the Petty Cash Fund
Illustration: On March 15 Zhū Ltd.’s petty cash custodian
requests a check for NT$2,610. The fund contains NT$390 cash
and petty cash receipts for postage NT$1,320, freight-out
NT$1,140, and miscellaneous expenses NT$150. The entry is:
March 15 Postage Expense 1,320

Freight-Out 1,140
Miscellaneous Expense 150
Cash 2,610

Replenishing Petty Cash Entry
Illustration: Assume in the preceding example that the
custodian had only NT$360 in cash in the fund plus the receipts
as listed. The request for reimbursement would therefore be
for NT$2,640 and Zhū would make the following entry.
March 15 Postage Expense 1,320

Supplies 1,140
Miscellaneous Expense 150
Cash Over and Short 30
Cash 2,640

DO IT! 2b: Petty Cash Fund
Bateer Company established a $50 petty cash fund on July 1. On
July 30, the fund had $12 cash remaining and petty cash
receipts for postage $14, office supplies $10, and delivery
expense $15. Prepare journal entries on July 1 and on July 30.

DO IT! 2b: Petty Cash Fund – Solution
July 1 Petty Cash 50

Cash 50
July 30 Postage Expense 14

Supplies 10
Delivery Expense 15
Cash Over and Short 1
Cash 38

Identify the Control Features of a
Bank Account.

Control Features of a Bank Account
Use of a bank contributes significantly to good internal
control over cash.
• Minimizes amount of currency that must be kept on
hand
• Creates a double record of bank transactions
• Bank reconciliation – process of comparing the bank’s
balance with the company’s balance
Helpful Hint
Essentially, the bank statement is a copy of the bank’s records
sent to the customer (or made available online for review)

Making Bank Deposits
Authorized employee
should make deposit.
Illustration 7.8: Deposit slip

Writing Checks
Written order
signed by
depositor
directing the
bank to pay a
specified sum of
money to a
designated
recipient.
Illustration 7.9: Check with remittance advice

Electronic Banking
• Most businesses today take advantage of electronic banking using a
computer or mobile banking on a mobile device.
• Many banks have websites where customers can access their account
information.
• Banks must ensure that these websites are secure and require users to
have strong passwords and to change passwords frequently.
Illustration 7.10: Mobile banking using a smart phone (check deposit)

Electronic Funds Transfer (EFT) System
• Disbursement systems that use wire, telephone, or
computers to transfer cash from one location to
another
• Normally result in better internal control since no cash
or checks are handled by company employees
Companies must also incorporate strong internal controls
• Marking a check as deposited once a picture is taken
and electronically submitted to the bank
• Safeguarding checks so that they are not stolen or
misused
• Documenting the use of cash withdrawn from the ATM
Bank Statement Illustration
Each month, the
company receives
from the bank a bank
statement showing
its bank transactions
and balances.
Illustration 7.11: Bank statement

Bank Statements
• Prepared from the bank’s perspective
• Every deposit the bank receives is an increase in the
bank’s liabilities (an account payable to the depositor)
• Lists in numerical sequence all paid checks along with
date check was paid and its amount
• Bank includes with bank statement memoranda
explaining other debits and credits it made to the
depositor’s account
• A check that is not paid by a bank because of
insufficient funds in a bank account is called an NSF
check (not sufficient funds)
Bank Statement Information
1. Checks paid and other debits that reduce the balance.
o Debit card transactions
o Electronic funds transfers for bill payments
2. Deposits and other credits that increase the balance.
o Direct deposit
o Automated teller machine
o Electronic funds transfer
3. Debit Memorandum.
o Bank service charge
o NSF check (not sufficient funds)
4. Credit Memorandum.
o Collection of a notes receivable
o Interest earned
5. The account balance after each day’s transactions.

Bank Statements Review Question
The control features of a bank account do not include:
a. having bank auditors verify the correctness of the
bank balance per books.
b. minimizing the amount of cash that must be kept
on hand.
c. providing a double record of all bank transactions.
d. safeguarding cash by using a bank as a depository.

Bank Statements – Solution
The control features of a bank account do not include:
a. having bank auditors verify the correctness of the
bank balance per books. (Correct)
b. minimizing the amount of cash that must be kept
on hand.
c. providing a double record of all bank transactions.
d. safeguarding cash by using a bank as a depository.

Reconciling the Bank Account
Reconcile balance per books and balance per bank to
their “correct or true” balance.
Reconciling Items:
1. Time Lags
o Deposits in transit
o Outstanding checks
o Bank memoranda
2. Errors

Reconciliation Procedure
Illustration 7.12: Bank
reconciliation adjustments

Bank Reconciliation Illustrated
The bank statement for Cray Gourmet, which the company
accessed online, shows a balance per bank of €15,907.45 on
April 30, 2025. On this date the balance of cash per books is
€11,709.45. From the foregoing steps, Cray determines the
following reconciling items for the bank.
Step 1. Deposits in transit (+): April 30
deposit (received by bank on May 1). €2,201.40
Step 2. Outstanding checks (−): No. 453,
€3,000.00; No. 457, €1,401.30; No. 460, 5,904.00
€1,502.70
Step 3. Bank errors (+/−): None.

Reconciling Items per Books
Step 1. Other deposits (+): Unrecorded electronic receipt
from customer on account on April 9 determined from
the bank statement. €1,035.00
Step 2. Other payments (−): The electronic payments on
April 3 and 7 were previously recorded by the company
when they were initiated. Unrecorded charges
determined from the bank statement are as follows:
Returned NSF check on April 29 425.60

Debit and credit card fees on April 30 120.00
Bank service charges on April 30 30.00
Step 3. Company errors (+): Check No. 443 was correctly written
by Cray for €1,226 and was correctly paid by the bank on April 12.
36.00
However, it was recorded as €1,262 on Cray’s books.
Illustration 7.13
Illustration 7.13: Bank reconciliation

Bank Reconciliation Example
Entries From Bank Reconciliation
Collection of Electronic Funds Transfer: Payment of
account by customer. The entry is:
Apr. 30 Cash 1,035.00

Accounts Receivable 1,035.00

Bank Reconciliation - Entries
Book Error: The cash disbursements journal shows that
check no. 443 was a payment on account to Roux Foods, a
supplier. The correcting entry is:
Apr. 30 Cash 36.00
Accounts Payable 36.00
NSF Check: As indicated earlier, an NSF check becomes an
account receivable to the depositor. The entry is:
Apr. 30 Accounts Receivable 425.60
Cash 425.60

Bank Reconciliation Adjusted Balance
Bank Charges Expense: Fees for processing debit and credit
card transactions (€120) and the bank service charges (€30)
have been combined in a single entry as follows:
Apr. 30 Bank Charge Expense 150.00
Cash 150.00
Illustration 7.14: Adjusted balance in Cash account

Bank Reconciliation Review Question
The reconciling item in a bank reconciliation that will
result in an adjusting entry by the depositor is:
a. outstanding checks.
b. deposit in transit.
c. a bank error.
d. bank service charges.

Bank Reconciliation – Solution
The reconciling item in a bank reconciliation that will
result in an adjusting entry by the depositor is:
a. outstanding checks.
b. deposit in transit.
c. a bank error.
d. bank service charges. (Correct)

DO IT! 3: Bank Reconciliation
Deepika Kann owns Deepika Fine Fabrics. Deepika asks you to

explain how she should treat the following reconciling items when
reconciling the company’s bank account: (1) a debit memorandum
for an NSF check, (2) a credit memorandum for an electronic
funds transfer from one of the company’s customers received by
the bank, (3) outstanding checks, and (4) a deposit in transit.

DO IT! 3: Bank Reconciliation –
Solution
Deepika should treat the reconciling items as follows.
1. NSF check: Deduct from balance per books
2. Electronic funds transfer: Add to balance per books
3. Outstanding checks: Deduct from balance per bank
4. Deposit in transit: Add to balance per bank

Explain the Reporting of Cash.

Reporting Cash
• Cash consists of coins, currency (paper money),
checks, money orders, and money on hand or
deposit
• The statement of financial position reports amount
of cash available at a given point in time
o Listed last in the current assets section
• Statement of cash flows shows sources and uses of
cash during a period of time

Reporting Cash Terminology
Cash Equivalents
Cash equivalents are short-term, highly liquid
investments that are both:
1. Readily convertible to known amounts of cash, and
2. So near their maturity that their market value is
relatively insensitive to changes in interest rates.
Restricted Cash
Cash that is not available for general use.

Reporting Cash Presentation
Illustration 7.15: Statement of financial position presentation of cash

Reporting Cash Review Question
Which of the following statements correctly describes
the reporting of cash?
a. Cash cannot be combined with cash equivalents.
b. Restricted cash funds may be combined with Cash.
c. Cash is listed first in the current assets section.
d. Restricted cash funds cannot be reported as a
current asset.

Reporting Cash – Solution
Which of the following statements correctly describes
the reporting of cash?
a. Cash cannot be combined with cash equivalents.
b. Restricted cash funds may be combined with Cash.
c. Cash is listed first in the current assets section.
(Correct)
d. Restricted cash funds cannot be reported as a
current asset.

DO IT! 4: Reporting Cash
Indicate whether each of the following statements is true or false.

1. Cash and cash equivalents are comprised of coins, currency
(paper money), money orders, and NSF checks.
2. Restricted cash is classified as either a current asset or non-
current asset, depending on the circumstances.
3. A company may have a negative balance in its bank account.
In this case, it should off set this negative balance against cash
and cash equivalents on the statement of financial position.
4. Because cash and cash equivalents often includes short-term
investments, accounts receivable should be reported as the
last item on the statement of financial position.

DO IT! 4: Reporting Cash – Solution
1. Cash and cash equivalents are comprised of coins, currency

(paper money), money orders, and NSF checks. False
2. Restricted cash is classified as either a current asset or non-
current asset, depending on the circumstances. True
3. A company may have a negative balance in its bank account.
In this case, it should off set this negative balance against
cash and cash equivalents on the statement of financial
position. False
4. Because cash and cash equivalents often includes short-term
investments, accounts receivable should be reported as the
last item on the statement of financial position. False

Compare the Accounting Procedures
for Fraud, Internal Control, and Cash
Under IFRS and U.S. GAAP.

U.S. GAAP and IFRS Key Points
• The fraud triangle discussed in this chapter is applicable to all
international companies. Some of the major frauds on a U.S. basis
are Enron (USA), WorldCom (USA), and more recently the Bernie
Madoff Ponzi scheme.
• Internal controls are a system of checks and balances designed to
prevent and detect fraud and errors. While most companies have
these systems in place, many have never completely documented
them, nor had an independent auditor attest to their effectiveness.
• Companies find that internal control review is a costly process but
badly needed. One study estimates the cost to U.S. companies at
over $35 billion. At the same time, examination of internal controls
indicates lingering problems in the way companies operate.

U.S. GAAP and IFRS - Similarities
• Accounting scandals both in the United States and internationally
have re-ignited the debate over the relative merits of GAAP, which
takes a “rules-based” approach to accounting, versus IFRS, which
takes a “principles-based” approach. The FASB announced that it
intends to introduce more principles-based standards.
• The accounting and internal control procedures related to cash are
essentially the same under both GAAP and IFRS. In addition, the
definition used for cash equivalents is the same.
• Most companies report cash and cash equivalents together under
GAAP, as shown in this text. In addition, GAAP follows the same
accounting policies related to the reporting of restricted cash.

U.S. GAAP and IFRS – Definitions
GAAP and IFRS define cash and cash equivalents similarly as follows.
• Cash is comprised of cash on hand and demand deposits.
• Cash equivalents are short-term, highly liquid investments that are
readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

U.S. GAAP and IFRS – Differences
• After numerous company scandals, the U.S. Congress passed the
Sarbanes-Oxley Act (SOX). Under SOX, all publicly traded U.S.
corporations are required to maintain an adequate system of internal
control.
• As a result of SOX, company executives and boards of directors must
ensure that internal controls are reliable and effective. In addition,
independent outside auditors must attest to the adequacy of the
internal control system.
• SOX created the Public Company Accounting Oversight Board
(PCAOB) to establish auditing standards and regulate auditor activity.

Copyright
All rights reserved. Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Act without the express written permission of
the copyright owner is unlawful. Request for further information should be
addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser
may make back-up copies for his/her own use only and not for distribution or resale.
The Publisher assumes no responsibility for errors, omissions, or damages, caused by
the use of these programs or from the use of the information contained herein.

Fraud, Internal Control, and Cash

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Fraud, Internal Control, and Cash

Uploaded by

Copyright:

Available Formats

Financial Accounting

IFRS 5th Edition

Fraud, Internal Control, and Cash

Copyright © John Wiley & Sons, Inc.

Copyright © John Wiley & Sons, Inc.

Copyright © John Wiley & Sons, Inc. LO 1

Illustration 7.1: Fraud triangle

Copyright © John Wiley & Sons, Inc. LO 1

Copyright © John Wiley & Sons, Inc. LO 1

Copyright © John Wiley & Sons, Inc. LO 1

Copyright © John Wiley & Sons, Inc. LO 1

Copyright © John Wiley & Sons, Inc. LO 1

Copyright © John Wiley & Sons, Inc. LO 1

Copyright © John Wiley & Sons, Inc. LO 1

Copyright © John Wiley & Sons, Inc. LO 1

Illustration 7.2: Physical controls

Illustration 7.3: Comparison of segregation of duties principle with

Copyright © John Wiley & Sons, Inc. LO 1

Copyright © John Wiley & Sons, Inc. LO 1

Copyright © John Wiley & Sons, Inc. LO 1

The costs should not exceed the benefits

Copyright © John Wiley & Sons, Inc. LO 1

Identify which control activity is violated and explain how the

Copyright © John Wiley & Sons, Inc. LO 1

1. Company accountant: • Treasurer, who manages the

Copyright © John Wiley & Sons, Inc. LO 1

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Illustration 7.4: Application of internal control principles to cash receipts

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

L. R. Cortez is concerned about the control over cash receipts in

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

March 1 Petty Cash 3,000

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

Illustration 7.7: Petty cash receipt

Copyright © John Wiley & Sons, Inc. LO 2

March 15 Postage Expense 1,320

Copyright © John Wiley & Sons, Inc. LO 2

March 15 Postage Expense 1,320

Copyright © John Wiley & Sons, Inc. LO 2

Copyright © John Wiley & Sons, Inc. LO 2

July 1 Petty Cash 50

July 30 Postage Expense 14

Copyright © John Wiley & Sons, Inc. LO 2