Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 13

Protecting Cash
Jason Chain Saws, Inc., had poor internal control over its cash transactions.acts about the company's cash position atApril30are described below.
The accounting records showed a cash balance of $20,325, which included a deposit in transit of 55,000.he balance indicated in the bank statement was $14,300.ncluded in the bank statement were the following debit and credit memoranda:

Outstanding checks as of April 30were as follows

Tom Crook, the company's cashier, has been taking portions of the company's cash receipts for
several months.ach month, Crook prepares the company's bank reconciliation in a manner that
conceals his thefts.is bank reconciliation for April is illustrated as follows:

Instructions
a. Determine the amount of cash shortage that has been concealed by Crook in his bank reconciliation.As a format, we suggest that you prepare the bank reconciliation 'Correctly.he amount of the shortage then will be the difference between the adjusted balances per the bank statement and per the accounting records.ou can then list this unrecorded cash shortage as the final adjustment necessary to complete your reconciliation.)
b. Carefully review Crook's bank reconciliation and explain in detail how he concealed the amount of the shortage.nclude a listing of the dollar amounts that were concealed in various ways.his listing should total the amount of shortage determined in part a.
c. Suggest some specific internal control measures that appear to be necessary for Jason Chain Saws, Inc.