reconciliations.

Recently a friend told Steve that while he was at a party he overheard Georgia bragging that she paid for her new clothes with money from the company's cash receipts. She said her boss would never know because he never checks the cash records.

Steve admits that he does not check on Georgia's work. He now wants to know if Georgia is stealing from him. He asks you to examine the company's cash records to determine whether she has stolen cash from the business and, if so$,$ how much.

Your examination of the company's cash records reveals the following information:

Required:

Georgia prepared the following August $31,201,$ bank reconciliation

Additions:

Balance in books, August $31,201$

Deductions:

Deposit in transit, Rugust $28,20\%1$

Bank service charge

Balance on bank statement, August $31,2001$An examination of the general ledger shows the Cash account with a balance of $$19,786$ on August $31.20$x$1.$The August $31$ bank statement shows a balance of $$17,589.$The August $28$ deposit of $$4,882$ does not appear on the August $31$ bank statement.A comparison of canceled checks returned with the August $31$ bank statement with the cash payments journal reveals the following checks as outstanding:The bank deducted $$10$ as a service fee.