Question

Problem 8 07A a Daisey Company is a very profitable small business. It has not, however, given much consideration to internal control. For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and bookkeeper. As a result Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthily bank reconciliations. No. 863 for $226.81 190 : astober 25 hic momoandum bar nnt hoon recceded he Daisev and No. B54 for $165.28. Included with the statement was a credit ne Da e ank then prepared the The company's ledoer showed one Cash account with a balance of $21.877.72. The balance induded undepasited cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $3,795.51. following bank recondlation in an effort to conceal his theft of cash. Cash balance per books, October 31 $21.877.72 Outstanding checks Add No. 862 $190.71 226.80 482.79 22.360.5 - Less: Undeposited receipts 3.795.51 18.565 Unadjusted balance per bank, October 31 Less: Bank credit memerandum 185.00 Cash balance per bank statement, October 31 $18,300 (a) Prepare a correct bank reconciliation. (Hint: Deduct the amount of the theft from the adjusted balance per books.) (Round answers to 2 decimal places, e.g. 52.75. List items that increase cash balance lirst. Reconcile cash balance per bank first.) DAISEY COMPANY Bank Reconciliation $ $ Open Show Work Click if you would like to Show Work for this question:

Answer 1

J K Daisey Company Bank Reconciliation As At October 31 2020 |Cash Balance As per bank Statement $18,380.00 Add Deposits in Transit 3,795.51 $22,175.51 Less Outstanding Checks 62 $140.75 183 $180.00 284 $253.25 862 $190.71 863 $226.80 864 $165.28 1,156.79 Adjusted Bank Balance $21,018.72 Cash Balance as per Books Add Collection of Note Receivable $ 185.00 |Adjusted Book Balance Less Adjusted Bank Balance Theft of Cash $21,877.72 $22,062.72 $21,018.72 1,044.00