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SLO3: Identify the importance of bank reconciliation and prepare bank reconciliation. DECISION CASE STUDY-V2 The records of Lumberjack Company indicate a July 31 cash balance of $9,806.05, which includes undeposited receipts for July 30 and 31. The cash balance on the bank statement as of July 31 is $6,004.95. This balance includes a note of $4,000 plus $240 interest collected by the bank but not recorded in the journal. Checks outstanding on July 31 were as follows: No. 670, $781.20; No. 679, $610; No. 690, $716.50; No. 1996, $127.40; No. 1997, $520; and No. 1999, $851.50. On July 3, the cashier resigned, effective at the end of the month. Before leaving on July 31, the cashier prepared the following bank reconciliation: Cash balance per books, July 31 $9,806.05 Add outstanding checks: No. 1996 $127.40 1997 520 1999 851.50 1,198.90 $11,004.95 Less undeposited receipts 5,000.00 Cash balance per bank, July 31 $ 6,004.95 Deduct unrecorded note with interest 4.240.00 True cash, July 31 $1,764.95 Subsequently, the owner of Lumberjack Company discovered that the cashier had stolen an unknown amount of undeposited receipts, leaving only $5,000 to be deposited on July 31. The owner, a close family friend, has asked your help in determining the amount that the former cashier has stolen. 1. Determine the amount the cashier stole from Lumberjack Company. Show your computations in good form. 2. How did the cashier attempt to conceal the theft