Introduction to Accounting Homework: Journal Entries and Trial Balance

This accounting homework solution covers several key aspects of introductory accounting. It begins with journal entries for various transactions, detailing debits and credits for each. A trial balance is then presented, summarizing the debit and credit balances of different accounts. The solution further addresses petty cash management, including journal entries related to establishing and replenishing a petty cash fund, along with examples of expenses paid from the fund. The document also includes a discussion of cash and cash equivalents, emphasizing the importance of internal controls to protect cash assets from fraud or mismanagement. It highlights the role of internal control structures in safeguarding assets, ensuring accurate accounting, and promoting adherence to business policies. Furthermore, it covers the importance of hiring and training trustworthy staff, and securing assets through insurance and fidelity bonds. References are also provided.

Introduction to
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3

Question 5
Journal entries
Debit Credit
A Cash $ 20,000
Computer $ 2,000
To capital $ 22,000
B Office furniture $ 6,000
To Supplier $ 6,000
C Cash $ 2,000
To Sales $ 2,000
D Supplier $ 3,000
To cash $ 3,000
E Client $ 3,000
To Sales $ 3,000
F Drawings $ 3,500
To Cash $ 3,500
G Cash $ 2,000
To Client $ 2,000
H Secretary's Salary $ 1,200
To Cash $ 1,200
Trial Balance
Particulars Debit Credit
Sales $ 5,000
Capital $ 22,000
Computer $ 2,000
Cash $ 16,300
Drawings $ 3,500
Secretrary's
salary $ 1,200
Sundry debtors $ 1,000
Sundry creditors $ 3,000
Office furniture $ 6,000

$ 30,000 $ 30,000

Question 7
Date Particular Dr Cr
2/4/2021 Petty cash fund $300
to bank $300
Note ($300 check to establish a petty cash fund.)
4-Apr parper and other supplies $48.20
To petty cash fund $48.20
Note (Purchased paper and other supplies for the office for
$48.20)
10-Apr coffee and muffines $35.20
To petty cash fund $35.20
Note (Paid $35.20 for coffee and muffins )
12-Apr postage to courier $20.15
To petty cash fund $20.15
Note (Paid $20.15 postage to courier)
14-Apr travel expenses $60
To petty cash fund $60
Note ($60 for travel expenses)
28-Apr Cleaning staff $100
To petty cash fund $100
Note (cleaning staff $100)
30-Apr Petty cash fund 125.6
To cash 100
to reamining amount 25.6
Note (amount is increased by $100)
Notes, money, debtors and creditors promissory notes such as receipts, banking receipts, and
bank transfers, numbers in savings accounts, including demand mutual funds are all examples of
cash through accounting. Cash equivalents represent brief, highly liquid financial securities that
are especially conducive to cash and/or become near enough for someone to their maturity date
that now the demand is unlikely to shift.Cash seems to be the commodity with the highest risk of
“reported missing,” so that's why they should guarantee that strict internal safeguards are in place
to protect the cash system. Cash is really an important element in the running of a company
because it is used in so many purchases. Cash seems to be the most readily conflict of almost all
of the customer's assets, whether by fraud or irresponsibility.All of the laws and procedures that
administrators use to secure assets, maintain accurate accounting, facilitate effective activities,
and encourage obedience to business policies are being used in internal control structures.

An internal management structure that is well-designed allows an organization's energy to
be guided, controlled, and evaluated. It is critical in identifying and avoiding theft as well as
safeguarding the orderly and systematic (e.g., equipment and property) and intellectual (e.g.,
creative property) assets (e.g., reputation or intellectual property such as trademarks).Internal
monitoring are concerned with the accuracy of financial statements, accurate guidance on the
accomplishment of operating or strategic priorities, and adherence to laws and regulations at the
corporate level. Internal controls apply to the measures taken to accomplish a certain goal (for
example, how to ensure that the organization's fees to 3rd parties are really for legitimate
services rendered). Internal monitoring processes minimise process variation, resulting in more
reliable results. A organisation must recruit professional and trustworthy staff to ensure that they
follow internal management protocols and procedures. As a result, the time and money an
organisation invests in recruiting workers is the starting point for good internal management. If
the workers have been hired, the corporation must prepare them and clearly explain company
policy to them. Companies must therefore insure their properties with sufficient casualty
insurance. This insurance compensates a business for the absence of a non-monetary product,
such as specialist machinery. Employees managing cash as well as other promissory notes can
also be covered by fidelity guarantees. These bonds guarantee that a corporation is compensated
in the event of a loss.

REFERENCES