JUUMLUY URUssignment/takeAssignment Main.do?invokerStake AssignmentSession eBook Show Me How Calculator Using Bank Reconciliation to Determine Cash Receipts Stolen Alaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions discovered during October 2073 that one of its sales dershad stolen an undetermined amount of cash receipts by taking the daily deposits to the bank. The following data have been gathered for October: Cash in bank according to the general ledger $8,510 Cash according to the October 31, 2013, bank statement Outstanding checks as of October 31, 2013 Bank service charge for October Note receivable, including interest collected by bank in October No deposits were in transit on October 31. a. Determine the amount of cash receipts stolen by the sales clerk. b. What accounting controls would have prevented or detected this Separation of duties. Check My Work a. Prepare a bank reconciliation. Because the cash ras been stolen, the adjusted balances in the bank and company sections of the reconciliation will not be equal. The difference is the stolen cash. b. Control procedures provide reasonable assurance that business goals including the prevention of fraud. Control procedures, which constitute one of the most important elements of internal control, include the following 1. Competent personnel, rotating duties, and mandatory vacations 2. Separating responsibilities for related operations 3. Separating operations, custody of assets, and accounting 4. Proofs and security measures Learning Objective 2, Learning Objective 3 and Learning Objective Check My Work Previous Next >