The following are internal controls related to various cycles.

1. Sales invoices are matched with shipping documents by the computer system and an exception report is generated.

2. Receiving reports are prenumbered and accounted for on a daily basis.

3. Sales invoices are independently verified before being sent to customers.

4. Payments by check are received in the mail by the receptionist, who lists the checks and restrictively endorses them.

5. Labor hours for payroll are reviewed for reasonableness by the computer system.

6. Checks are signed by the company president, who compares the checks with the underlying supporting documents.

7. Unmatched shipping documents are accounted for on a daily basis.

8. The computer system verifies that all payroll payments have a valid employee identification number assigned by the human resources department at the time of hiring.

9. The accounts receivable master file is reconciled to the general ledger on a monthly basis.

Required

For each internal control, identify the type(s) of specific control activity (or activities) to which it applies (such as proper authorization and adequate documents and records).

For each internal control, identify the transaction-related management assertion(s) to which it applies.

Fred smithers, a recent college graduate decided to open his own portable juice bar, smithers smoothies, to wheel around newport beach. you, a trusted friend of fred, are a business major that has also recently graduated and agreed to handle the books for a while to get some practical experience and have a favor that you can ask of fred in the future. given the following five transactions concerning the new venture, prepare the necessary journal entries for the transactions, post the journal entries to appropriate t accounts and prepare a trial balance as of the end of the month in order to answer to the necessary may 2: fred invests $12,000 of his own money to start the new company. this money was obtained from a part-time job working at a legal firm while he was in school. may 3: fred spent $5,100 cash to purchase a refrigerated trailer that he can pull behind his car and set up at the beach. under your advice, fred agrees to place the new asset under an account called "equipment." may 6: fred bought $640 of supplies on account from the flav-o-rite confectioners company. because they will last longer than a single accounting period fred agrees to record them as, "supplies" as per your suggestion. may 13: fred sat on the beach for six hours without a single sale and was feeling very down. right before he left, however, a plumber escorting his family reunion along the beach stopped by his stand and bought $800 worth of smoothies for the entire family. under your advice, fred agrees to call this cash revenue, "sales." may 15: excited about his new venture, fred withdraws $350 from the company to take his girlfriend out to dinner. what would be the balance in the cash account at the end of the period following the posting of all the transactions?