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Forest Construction Inc. has poor internal control. Recently, Evan Root, the owner, has suspected the bookkeeper of stealing. Here are some details of the business's

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Forest Construction Inc. has poor internal control. Recently, Evan Root, the owner, has suspected the bookkeeper of stealing. Here are some details of the business's cash position (Click on the icon to view additional information.) Requirements Requirement 1. Prepare the bank reconciliation. There are no bank or book errors. Begin by preparing the bank section of the bank reconciliation. Then complete the book section of the bank reconciliation. (Leave unused cells blank.) Forest Construction Inc. Bank Reconciliation Requirements January 31, 2020 BANK: 1. Prepare the bank reconciliation. There are no bank or book errors. 2. Using the facts provided, identify the information that would be relevar Add: determining whether or not the bookkeeper has stolen cash from the 3. Recommend to Root any changes needed to prevent this from happe again. Less: Print Done BOOKS: Add: Less: Requirement 2. Using the facts provided, identify the information that would be relevant to determining whether or not the bookkeeper has stolen cash from the business. Based on the above reconciliation, it appears the bookkeeper has stolens The bookkeeper thet Requirement 3. Recommend to Root any changes needed to prevent this from happening again. The owner should siness's cash position at January 31, 2020: * Additional Information ank or book errors. n that would be relevant to stolen cash from the business event this from happening a. The Cash account shows a balance of $10,394. This amount includes a January 31 deposit of $3,829 that does not appear on the January 31 bank statement. b. The January 31 bank statement shows a balance of $8,644. The bank statement lists a $280 bank collection, a(n) $13 service charge, and a $44 NSF cheque. The bookkeeper has not recorded any of these items c. At January 31, the following cheques are outstanding: Cheque No. Amount 154 120 256 147 278 858 291 987 292 202 293 142 d. The bookkeeper records all incoming cash and makes bank deposits. He also reconciles the monthly bank statement. Here is his January 31 reconciliation: Balance per books, January 31 $ 10,394 Add: Outstanding cheques 1,856 Bank collection... 280 Subtotal 12,530 Less: Deposits in transit 3,829 Service charge NSF cheque (3,886) Balance per bank, January 31 8,644 13 44 $ Print Done the business. eer the total of outstanding cheques by $ to cover the theft

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