Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Equlpment Rental Company had pocr intemal cantrol over its cash transections. Fucts tboot the compeny's cath ponition ot Nowember. 30 are dencribed below. bank statement

image text in transcribed
image text in transcribed
Equlpment Rental Company had pocr intemal cantrol over its cash transections. Fucts tboot the compeny's cath ponition ot Nowember. 30 are dencribed below. bank statement were the followiag debit and credit memonents: Outstandiag checks as of November 30 wate an follows: Melanie Chann, the company's castict, has been taking poinths of the compury's cach receip that conceals her thefts. Her bank reconciliation for Novernber is illasinated as follows: Instructions a. Determine the amount of the cash shortage that has been concealed by Charm in her bank reconciliation. (As a format, we suggest that you prepare the bank reconciliation correctly. The amount of the shortage then will be the difference between the adjusted balances per the bank statement and per the accounting records. You can then list this unrecorded cash shortage as the final adjustment necessary to complete your reconciliation.) b. Carefully review Charm's bank reconeitiation and explain in detail how she concealed the amount of the shortage. Include a listing of the dollar amounts that were concealed in various ways. This listing should total the amount of the shortage determined in part a. c. Suggest some specific internal control measures that appear to be necessary for Equipment Rental Company

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Financial Accounting

Authors: Christopher D. Burnley

3rd Canadian Edition

1119715474, 9781119715474

More Books

Students also viewed these Accounting questions

Question

List the five steps in the message-sending process.

Answered: 1 week ago

Question

List and explain the four steps in the communication process.

Answered: 1 week ago

Question

Describe how communication flows through organizations.

Answered: 1 week ago