DE7-13 Barry Cruise owns Cruise Vacation Planners. He fears that a trusted employee has been stealing from
Question:
DE7-13 Barry Cruise owns Cruise Vacation Planners. He fears that a trusted employee has been stealing from the company. This employee receives cash from customers and also pre- pares the monthly bank reconciliation. To check up on the employee. Cruise prepares his own bank reconciliation, as follows: CRUISE VACATION PLANNERS Bank Reconciliation August 31, 20X7 Bank Books Balance, August 31 $3,000 Add: Deposit in transit............ 400 Less: Outstanding checks. Adjusted bank balance. (1,100) $2,300 Balance. August 31 Add: Bank collection Interest revenue. Less: Service charge. Adjusted book balance $2.500 800 10 (30) $3,280 Does it appear that the employee has stolen from the company? If so, how much? Explain your answer. Which side of the bank reconciliation shows the company's true cash balance?
Step by Step Answer:
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones