E5-22: Bank reconciliation Obj 5 Corrected adjusted balance:

$24,110 Identify the errors in the following bank reconciliation: DAKOTA CO. Bank Reconciliation For the Month Ended June 30, 20Y3 Cash balance according to bank statement $22,900 Add outstanding checks: No. 7715 $1,450 7760 915 7764 1,850 7765 775 4,990 $27,890 Deduct deposit of June 30, not recorded by bank 6,200 Adjusted balance $21,690 Cash balance according to companys records $15,625 Add: Proceeds of note collected by bank: Principal $6,000 Interest 360 $6,360 Service charges 30 6,390 $22,015 Deduct: Check returned because of insufficient funds $ 545 Error in recording June 20 deposit of $5,200 as $2,500 2,700 3,245 Adjusted balance $18,770 E5-23: Using bank reconciliation to determine cash receipts stolen Obj 2, 3, 5 Pala Co. records all cash receipts on the basis of its cash register tapes. Pala Co. discovered during April 20Y1 that one of its sales clerks had stolen an undetermined amount of cash receipts when she took the daily deposits to the bank. The following data have been gathered for April: Cash in bank according to the company records $19,565 Cash according to the April 30, 20Y1, bank statement 28,175 Outstanding checks as of April 30, 20Y1 12,100 Bank service charges for April 75 Note receivable, including interest collected by bank in April 3,710 No deposits were in transit on April 30. a. Determine the amount of cash receipts stolen by the sales clerk. b. What accounting controls would have prevented or detected this theft?