Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blossom Company is a very profitable small business. It has not, however, given much consideration to internal control. For example, in an attempt to keep

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Blossom 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 bookkeeper. As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations. The balance per the bank statement on October 31, 2022, was $20,171.00. Outstanding checks were No. 62 for $153.00, No. 183 for $179.00, No. 284 for $259.00, No. 862 for $226.00, No. 863 for $265.00, and No. 864 for $211.00. Included with the statement was a credit memorandum of $218.00 indicating the collection of a note receivable for Blossom Company by the bank on October 25. This memorandum has not been recorded by Blossom The company's ledger showed one Cash account with a balance of $23,732.00. The balance included undeposited cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $3,905.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash. Cash balance per books, October 31 $23.732.00 Add: Outstanding checks No. 862 $226,00 No.863 265.00 No. 864 211.00 562.00 24.294.00 Less: Undeposited receipts 3,905.00 Unadjusted balance per bank. October 31 20.389.00 Less: Bank credit memorandum 218.00 Cash balance per bank statement: October 31 $20.171.00 (a) Prepare a correct bank reconciliation. (Hint: Deduct the amount of the theft from the adjusted balance per books.) (List Items that Increase balance as per bank & books first.) BLOSSOM COMPANY Bank Reconciliation S $ e Textbook and Media Sasaforte Attempts: unlimited Submit Answer BLOSSOM COMPANY Bank Reconciliation October 31, 2022 For the Month Ended October 31, 2022 For the Year Ended October 31, 2022 > $ Balance per bank statement Adjusted balance per bank Undeposited receipts Outstanding checks Bank credit (collection of note receivable) Theft v $ v Vs > $ No. 62 No. 63 No. 183 No. 184 No. 284 No. 285 No. 862 No. 863 No. 864

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The ASQ Certified Medical Device Auditor Handbook

Authors: Scott A Laman

4th Edition

1953079962, 978-1953079961

More Books

Students also viewed these Accounting questions

Question

The nature and importance of the global marketplace.

Answered: 1 week ago