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Blue Construction Inc. has poor internal control. Recently, Fred Root, the owner, has suspected the bookkeeper of stealing. Here are some details of the business's
Blue Construction Inc. has poor internal control. Recently, Fred Root, the owner, has suspected the bookkeeper of stealing. Here are some details of the business's cash position at June 30, 2020: i (Click on the icon to view additional information.) Requirements Additional Information Requirement 1. Prepare the bank reconciliation. There are no bank or book errors. Begin by preparing the bank section of the bank reconciliation. Then complete the book section of the bank reconciliation. (Leave unused cells blank.) a. The Cash account shows a balance of $10,495. This amount includes a June 30 deposit of $3,818 that does not appear on the June 30 bank statement. b. The June 30 bank statement shows a balance of $8,311. The bank statement lists a $280 bank collection, a(n) $10 service charge, and a $38 NSF cheque. The bookkeeper has not recorded any of these items. c. At June 30, the following cheques are outstanding Blue Construction Inc. Bank Reconciliation June 30, 2020 X Cheque No. Amount BANK: Requirements 154 $ 120 256 148 Add 278 899 291 980 Less 1. Prepare the bank reconciliation. There are no bank or book errors. 2. Using the facts provided, identify the information that would be relevant to determining whether or not the bookkeeper has stolen cash from the business. 3. Recommend to Root any changes needed to prevent this from happening again. 292 209 BOOKS: 293 146 d. The bookkeeper records all incoming cash and makes bank deposits. He also reconciles the monthly bank statement. Here is his June 30 reconciliation: Balance per books, June 30 $ 10,495 Add Print Done Add: Outstanding cheques 1,402 Bank collection 280 Subtotal 12,177 Less: Less: Deposits in transit $ 3,818 Service charge 10 NSF cheque 38 (3,866) Balance per bank, June 30. $ 8,311 Print Done Requirement 2. Using the facts provided, identify the information that would be relevant to determining whether or not the bookkeeper has stolen cash from the business. Based on the above reconciliation, it appears the bookkeeper has stolen $ The bookkeeper v the total of outstanding cheques by SL to cover the theft. Requirement 3. Recommend to Root any changes needed to prevent this from happening again. The owner should
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