ction of a customer's De had not been accu the account 6. The bank returned an NSF check in the amo 7. The bank included a credit memorandum for $630 representing a collection The principal portion was $610 and the interest portion was $20. The int Required a. Prepare the June bank reconciliation for the Chicago Skate Company b. Prepare any necessary adjusting entries. SERIAL PROBLEM: KATE'S CARDS (Note: This is a continuation of the Serial Problem: Kate's Cards from Chapters / through 6. EYK7-2. SP7. vestigate the cash han aling funds. "I have me sited receipts amounted to the cashier (who works ank reconciliation doesn't Kate's Cards On February 15, 2019. Kate Collins, owner of Kate's Cards, asks you to investigate dling activities in her business. She believes that a new employee might be stealing fun proof," she says, "but I'm fairly certain that the January 31, 2019, undeposited receipts more than $12,000, although the January 31 bank reconciliation prepared by the cashier (w in the treasurer's department) shows only $7,238.40. Also, the January bank reconciliation show several checks that have been outstanding for a long time. The cashier told me that these needn't appear on the reconciliation because he had notified the bank to stop payment on thema had made the necessary adjustment on the books. Does that sound reasonable to you?" At your request, Kate shows you the following (unaudited) January 31, 2019, bank reconciliatinn prepared by the cashier: Required Use the financi following ques What title Accordin alents ac Accordir lishing a d. Deloitte audit of Comparatis The financia Under Arm Required Use the infc a. What i b. What Decen How d. For ea eratin EYK7-3. Business related ele near Chic control re observe v 1. Qual the geri: orde 2. Qua OWI $10,893.89 Ending balance from bank statement.. Add: Deposits in transit. KATE'S CARDS Bank Reconciliation January 31, 2019 $ 4,843.69 Balance from general ledger ... 7,238.40 $12,082.09 Less: Bank service charge. . . . . . . . $ 60.00 Unrecorded credit. ......... 1,200.00 (1,260.00 Less: Outstanding checks: No. 2351 No. 2353 ............ No. 2354 Reconciled cash balance ......... $1,100.20 578.32 969.68 (2,448.20) $ 9,633.89 Reconciled cash balance...... $ 9,633.89 bridge Business Publishers Cambridge Bu Chapter 7 Internal Control and Cash 367 Vou discover that the $1,200 unrecorded bank credit represents a note collected by the bank on 's behalf; it appears in the deposits column of the January bank statement. Your investigation also that the December 31, 2018, bank reconciliation showed three checks that had been outstanding than 10 months: No. 1432 for $600, No. 1458 for $466.90, and No. 1512 for $253.10. You also discover that these items were never added back into the Cash account in Kate's books. In confirming that the checks shown on the cashier's January 31 bank reconciliation were outstanding on that date, vou discover that check No. 2353 was actually a payment of $1.658.32 and had been recorded on the books for that amount. To confirm the amount of undeposited receipts at January 31, you request a bank statement for February 1-12 (called a cutoff bank statement). This indeed shows a January 1 deposit of $7,238.40. Required a. Calculate the amount of funds stolen by the employee. b. Describe how the employee concealed the theft. C. What suggestions would you make to Kate about cash control procedures? EXTENDING YOUR KNOWLE REPORTING AND ANALYSIS EYK7-1. Financial Repo COL SPOR Financial Reporting Problem: Columbia Sportswear Company The financial statements for nandiya at the end of this book. ction of a customer's De had not been accu the account 6. The bank returned an NSF check in the amo 7. The bank included a credit memorandum for $630 representing a collection The principal portion was $610 and the interest portion was $20. The int Required a. Prepare the June bank reconciliation for the Chicago Skate Company b. Prepare any necessary adjusting entries. SERIAL PROBLEM: KATE'S CARDS (Note: This is a continuation of the Serial Problem: Kate's Cards from Chapters / through 6. EYK7-2. SP7. vestigate the cash han aling funds. "I have me sited receipts amounted to the cashier (who works ank reconciliation doesn't Kate's Cards On February 15, 2019. Kate Collins, owner of Kate's Cards, asks you to investigate dling activities in her business. She believes that a new employee might be stealing fun proof," she says, "but I'm fairly certain that the January 31, 2019, undeposited receipts more than $12,000, although the January 31 bank reconciliation prepared by the cashier (w in the treasurer's department) shows only $7,238.40. Also, the January bank reconciliation show several checks that have been outstanding for a long time. The cashier told me that these needn't appear on the reconciliation because he had notified the bank to stop payment on thema had made the necessary adjustment on the books. Does that sound reasonable to you?" At your request, Kate shows you the following (unaudited) January 31, 2019, bank reconciliatinn prepared by the cashier: Required Use the financi following ques What title Accordin alents ac Accordir lishing a d. Deloitte audit of Comparatis The financia Under Arm Required Use the infc a. What i b. What Decen How d. For ea eratin EYK7-3. Business related ele near Chic control re observe v 1. Qual the geri: orde 2. Qua OWI $10,893.89 Ending balance from bank statement.. Add: Deposits in transit. KATE'S CARDS Bank Reconciliation January 31, 2019 $ 4,843.69 Balance from general ledger ... 7,238.40 $12,082.09 Less: Bank service charge. . . . . . . . $ 60.00 Unrecorded credit. ......... 1,200.00 (1,260.00 Less: Outstanding checks: No. 2351 No. 2353 ............ No. 2354 Reconciled cash balance ......... $1,100.20 578.32 969.68 (2,448.20) $ 9,633.89 Reconciled cash balance...... $ 9,633.89 bridge Business Publishers Cambridge Bu Chapter 7 Internal Control and Cash 367 Vou discover that the $1,200 unrecorded bank credit represents a note collected by the bank on 's behalf; it appears in the deposits column of the January bank statement. Your investigation also that the December 31, 2018, bank reconciliation showed three checks that had been outstanding than 10 months: No. 1432 for $600, No. 1458 for $466.90, and No. 1512 for $253.10. You also discover that these items were never added back into the Cash account in Kate's books. In confirming that the checks shown on the cashier's January 31 bank reconciliation were outstanding on that date, vou discover that check No. 2353 was actually a payment of $1.658.32 and had been recorded on the books for that amount. To confirm the amount of undeposited receipts at January 31, you request a bank statement for February 1-12 (called a cutoff bank statement). This indeed shows a January 1 deposit of $7,238.40. Required a. Calculate the amount of funds stolen by the employee. b. Describe how the employee concealed the theft. C. What suggestions would you make to Kate about cash control procedures? EXTENDING YOUR KNOWLE REPORTING AND ANALYSIS EYK7-1. Financial Repo COL SPOR Financial Reporting Problem: Columbia Sportswear Company The financial statements for nandiya at the end of this book