{"id":122997,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/purpose-of-assignment"},"modified":"2017-08-12T07:45:07","modified_gmt":"2017-08-12T07:45:07","slug":"purpose-of-assignment","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/purpose-of-assignment\/","title":{"rendered":"Purpose of Assignment"},"content":{"rendered":"
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\n April 8, 2017<\/time>\n <\/div>\n

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\n assignment<\/a>\n <\/div>\n<\/p><\/div>\n

Purpose of Assignment<\/h2>\n

Purpose of Assignment <\/strong><\/p>\n

Reconciling bank accounts is a good way to help maintain internal controls over cash. With time lags and posting errors it is easy for cash transactions to be omitted, recorded in a different accounting period, or reflect incorrect amounts. This assignment with give you practical experience in reconciling the cash balance as noted on the company books to the bank\u2019s records.<\/p>\n

Assignment Steps <\/strong><\/p>\n

Resources:<\/strong> Financial Accounting: Tools for Business Decision Making<\/em><\/p>\n

Scenario:<\/strong> 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 book-keeper. As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations.<\/p>\n

The balance per the bank statement on October 31, 2017, was $18,380. Outstanding checks were No. 62 for $140.75, No. 183 for $180, No. 284 for $253.25, No. 862 for $190.71, No. 863 for $226.80, and No. 864 for $165.28. Included with the statement was a credit memorandum of $185 indicating the collection of a note receivable for Daisey Company by the bank on October 25.<\/p>\n

This memorandum has not been recorded by Daisey.<\/p>\n

The company\u2019s ledger showed one Cash account with a balance of $21,877.72. The balance included undepositied 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. He then prepared the following bank reconciliation in an effort to conceal his theft of cash:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
Cash balance per books, October 31<\/td>\n<\/td>\n$21,877.72<\/td>\n<\/tr>\n
Add: Outstanding checks<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
No. 862<\/td>\n$190.71<\/td>\n<\/td>\n<\/tr>\n
No. 863<\/td>\n226.80<\/td>\n<\/td>\n<\/tr>\n
No. 864<\/td>\n165.28<\/td>\n482.79<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n22,360.51<\/td>\n<\/tr>\n
Less: Undeposited receipts<\/td>\n<\/td>\n3,795.51<\/td>\n<\/tr>\n
Unadjusted balance per bank, October 31<\/td>\n<\/td>\n18,565.00<\/td>\n<\/tr>\n
Less: Bank credit memorandum<\/td>\n<\/td>\n185.00<\/td>\n<\/tr>\n
Cash balance per bank statement, October 31<\/td>\n<\/td>\n$18,380.00<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Prepare<\/strong> a 1,050-word bank reconciliation report (hint:<\/em> deduct the amount of the theft from the adjusted balance per books) including the following: <\/strong><\/p>\n