A company had poor internal control over its cash transactions.Facts about its cash position at June 30,2008,were as follows:
The cash account showed a balance of $37,804,which included undeposited receipts.A credit of $200 on the bank's records did not appear on the books of the company.The balance per the bank statement was $31,102.Outstanding cheques were: No.62 for $232,No.183 for $300,No.284 for $506,No.8621 for $382,No.8623 for $414,and No.8632 for $290.
The cashier removed all undeposited receipts in excess of $7,588 and prepared the following reconciliation: Prepare a supporting schedule showing how much the cashier removed.Also,explain how the cashier attempted to conceal the theft.

Question

A company had poor internal control over its cash transactions.Facts about its cash position at June 30,2008,were as follows:
The cash account showed a balance of $37,804,which included undeposited receipts.A credit of $200 on the bank's records did not appear on the books of the company.The balance per the bank statement was $31,102.Outstanding cheques were: No.62 for $232,No.183 for $300,No.284 for $506,No.8621 for $382,No.8623 for $414,and No.8632 for $290.
The cashier removed all undeposited receipts in excess of $7,588 and prepared the following reconciliation:  Prepare a supporting schedule showing how much the cashier removed.Also,explain how the cashier attempted to conceal the theft.

Quizplus · Accepted Answer

The Answer of A company had poor internal control over its cash transactions.Facts about its cash position at June 30,2008,were as follows:
The cash account showed a balance of $37,804,which included undeposited receipts.A credit of $200 on the bank's records did not appear on the books of the company.The balance per the bank statement was $31,102.Outstanding cheques were: No.62 for $232,No.183 for $300,No.284 for $506,No.8621 for $382,No.8623 for $414,and No.8632 for $290.
The cashier removed all undeposited receipts in excess of $7,588 and prepared the following reconciliation:  Prepare a supporting schedule showing how much the cashier removed.Also,explain how the cashier attempted to conceal the theft.

A Company Had Poor Internal Control Over Its Cash Transactions