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Bramble Company is a very profitable small business. It has not, however, given much consideration to internal control. For example, in an attempt to keep
Bramble 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 handies all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations. The balance per the bank statement on October 31,2022 , was $17,820. Outstanding checks were No. 62 for $150.10, No. 183 for $186, No. 284 for $267.75, No. 862 for $200.70, No. 863 for $232, and No. 864 for $177.10. Included with the statement was a credit memorandum of $179.80 indicating the collection of a note receivable for Bramble Company by the bank on October 25 . This memorandum has not been recorded by Bramble. The company's ledger showed one Cash account with a balance of $21,870.00. 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 $4,380.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash. (a) Prepare a correct bank reconciliation. (Hint Deduct the amount of thei it irom the adjusted balance per books.) (Round answers to 2 decimal ploces, eg. 52.75. List items that increase cash balance first)
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