{"id":54252,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/preparing-comprehensive-bank-reconciliation-with-theft-and-internal-control-deficiencies"},"modified":"2017-08-16T13:13:39","modified_gmt":"2017-08-16T13:13:39","slug":"preparing-comprehensive-bank-reconciliation-with-theft-and-internal-control-deficiencies","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/preparing-comprehensive-bank-reconciliation-with-theft-and-internal-control-deficiencies\/","title":{"rendered":"Preparing Comprehensive Bank Reconciliation with Theft and Internal Control Deficiencies"},"content":{"rendered":"

Purpose of Assignment <\/b><\/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’s records. <\/p>\n

Assignment Steps <\/b><\/p>\n

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

Scenario:<\/b> 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’s 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

Prepare<\/b> a 200-word bank reconciliation report (hint: deduct the amount of the theft from the adjusted balance per books) including the following:<\/p>\n