Question
Patricia Company had poor internal control over its cash transactions. Facts about its cash position at November 30, 2022, were as follows: The cash ledger
Patricia Company had poor internal control over its cash transactions. Facts about its cash position at November 30, 2022, were as follows: The cash ledger showed a balance of $18,901.62, which included undeposited receipts which were on hand at November 30. A credit of $100 on the banks records did not appear on the books of the company. The balance per bank statement was $15,550. Outstanding checks were #62 for $116.25, #183 for $150, #284 for $253.25, #8621 for $190.71, #8623 for $206.80, and #8632 for $145.28. The cashier subtracted undeposited receipts of $3,794.41 and prepared the following reconciliation:
Balance per books, November 30, 2022 | $18,901.62 | |||||
---|---|---|---|---|---|---|
Add: Outstanding checks | ||||||
8621 | $190.71 | |||||
8623 | 206.80 | |||||
8632 | 145.28 | 442.79 | ||||
19,344.41 | ||||||
Less: Undeposited receipts | (3,794.41 | ) | ||||
Balance per bank, November 30, 2022 | 15,550.00 | |||||
Deducted: Unrecorded credit | 100.00 | |||||
True cash, November 30, 2022 | $15,450.00 |
Prepare a working paper showing how much the cashier embezzled.
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