The voucher system of control is designed to control cash disbursements and the acceptance of

The voucher system of control is designed to control cash disbursements and the acceptance of obligations. The voucher system of control establishes procedures for what two processes? What types of expenditures should be overseen by a voucher system of control? When is the voucher initially prepared? Explain.

On January 1 of the current year, three individuals organized Northwest Company as a corporation

On January 1 of the current year, three individuals organized Northwest Company as a corporation. Each individual invested $10,000 cash in the business. On December 31 of the current year, they prepared a list of resources owned (assets) and debts owed (liabilities) to support a company loan request for $71,000 submitted to a local bank. None of the three investors had studied accounting. The two lists prepared were as follows:              

Company resources                        

Cash      $              14,000

Service supplies inventory (on hand)                     8,500

Service trucks (four, practically new)                      132,000

Personal residences of organizers (three houses)                            170,000

Service equipment used in the business (practically new)                            30,000

Bills due from customers (for services already completed)                          24,500

Total      $              379,000

Company obligations                      

Unpaid wages to employees      $              20,000

Unpaid taxes                    8,500

Owed to suppliers                          11,000

Owed on service trucks and equipment (to a finance company)                45,000

Loan from organizer                      14,500

Total      $              99,000

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