e's rds (Note: This is a continuation of the Serial Problem: Kate's Cards from Chapters 1 through 6.) SP7. On February 15, 2019, Kate Collins, owner of Kate's Cards, asks you to investigate the cash han- dling activities in her business. She believes that a new employee might be stealing funds. I have no proof, she says, but I'm fairly certain that the January 31, 2019, undeposited receipts amounted to more than $12,000, although the January 31 bank reconciliation prepared by the cashier (who works in the treasurer's department) shows only $7,238.40. Also, the January bank reconciliation doesn't show several checks that have been outstanding for a long time. The cashier told me that these checks needn't appear on the reconciliation because he had notified the bank to stop payment on them and he had made the necessary ment on the books. Does that sound reasonable to you?" At your request, Kows you the following (unaudited) January 31, 2019, bank reconciliation prepared by the cashier: $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.. Unrecorded credit.. $ 60.00 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 Kate's Cards Bank Reconciliation 31-Jan Ending Balance from Bank Statement 4,843.69 Balance from General Ledger ####### Add: Deposits not credited by bank Add: 7,238.40 12,082.09 ####### Less: Bank service charge Unrecorded credit 60.00 ##### ####### Less: Outstanding cheoks (list in numerical order) No. 2351 ###### 2353 578.32 2354 969.68 (2,448.20) Reconciled Cash Balance 9,633.89 Reconciled Cash Balance 9,633.89 Kate's Cards Corrected Bank Reconciliation 31-Jan Ending Balance from Bank Statement Balance from General Ledger Add: Add: Subtotal Less: Less: Outstanding checks (list in numerical order) No