CP 8-8 Bank reconciliation and internal control The records of Parker Company indicate a July 31 cash balance of $10,400, which include undeposited receipts for July 30 and 31. The cash balance on the bank statement as of July 31 is $10,575. This balance includes a note of $2,250 plus $150 interest collected by the bank but not recorded in the journal. Checks outstanding on July 31 were as follows: No. 2670, $1,050; No. 3679, $675; No. 3690, $1,650; No. 5148, $225; No. 5149, $750; and No. 5151, $800 On July 25, the cashier resigned, effective at the end of the month. Before leaving July 31, the cashier prepared the following bank reconciliation: Chapter 8 Internal Control and Cash 439 Cash balance per books, July 31. Add outstanding checks: No. 5148 5149 5151 510400 $225 750 500 Less undeposited receipts ... Cash balance per bank, July 31... Deduct unrecorded note with interest ... True cash, July 31. .... 1,675 $12,075 1,500 $10,575 2.400 $ 8.175 Calculator Tape of Outstanding Checks: 0" 225+ 750+ 800+ 1.675 Subsequently, the owner of Parker Company discovered that the cashier had stolen an unknown amount of undeposited receipts, leaving only $1,500 to be deposited on July 31. The owner, a close family friend, has asked for your help in determining the amount that the former cashier stole. 1. Determine the amount the cashier stole from Parker Company. Show your computa tions in good form. 2. How did the cashier attempt to conceal the theft? 3. a. Identify two major weaknesses in internal controls that allowed the cashier to steal the undeposited cash receipts. Recommend improvements in internal controls so that similar types of thefts of undeposited cash receipts can be prevented