Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed Navy Construction Inc. has poor internal control. Recently, Jim Root, the owner, has suspected the bookkeeper of stealing. Here are some details of the business's cash position at June 30 , 2020 : i. (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.) Additional Information a. The Cash account shows a balance of $10,379. This amount includes a June 30 deposit of $3,823 that does not appear on the June 30 bank statement. b. The June 30 bank statement shows a balance of $8,548. The bank statement lists a $270 bank collection, a(n) $13 service charge, and a $38 NSF cheque. The bookkeeper has not recorded any of these items c. At June 30 , the following cheques are outstanding: 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 stolen : The bookkeeper the total of outstanding cheques by $ to cover the theft. Requirement 3. Recommend to Root any changes needed to prevent this from happening again. The owner should

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_2

Step: 3

blur-text-image_3

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

Complete Handbook Of Operational And Management Auditing

Authors: William T. Thornhill

1st Edition

0131611410, 978-0131611412

More Books

Students also viewed these Accounting questions

Question

Anita Vasquez received $180,000 from her mother

Answered: 1 week ago

Question

Explain the process of MBO

Answered: 1 week ago