Saved Help Save & Exit Submit Check my work es Critical Thinking Problem 9.2 (Algo) Cash Controls LO 9-7, 9-10 Mike Ryan is the owner of Ryan Contractors, a successful small construction company. He spends most of his time out of the office supervising work at various construction sites, leaving the operation of the office to the company's cashier/bookkeeper, Gloria Anderson. Gloria makes bank deposits, pays the company's bills, maintains the accounting records, and prepares monthly bank reconciliations. Recently a friend told Mike that while he was at a party he overheard Gloria 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. Mike admits that he does not check on Gloria's work. He now wants to know if Gloria is stealing from him. He asks you to examine the company's cash records to determine whether Gloria has stolen cash from the business and, if so, how much Your examination of the company's cash records reveals the following information: 1. Gloria prepared the following August 31, 20x1, bank reconciliation Balance in books, August 31, 20x1 Additions Outstanding checks Check 1780) Check 1784 $1,078 2,082 $19,327 < Prev 2 of 2 Next ent i Deductions for outstanding checks: Total outstanding checks Adjusted bank balance Balance in books Deduction: Adjusted book balance $ 0 A S 0 0 0 Corrected adjusted book balance S 0 Prev Check 1598 $ 606 Check 1680 1,603 Check 1724 870 Check 1780 1,078 Check 1784 2,082 Check 1806 649 Help Sev Prepare a bank reconciliation using the format presented in this chapter for the month of August. Assume there were no bank or bookkeeping errors in August. RYAN CONTRACTORS Bank Reconciliation Statement August 31, 20x1 Balance on bank statement Additions; Deductions for outstanding checks gnment Netflix Drive im Google D... Analysis Nine key... TBMM de onaylana Saved 1. Gloria prepared the following August 31, 20X1, bank reconciliation. Balance in books, August 31, 20x1 Additions: Outstanding checks Check 1780 Check 1784 Check 1806 Deductions: Deposit in transit, August 28, 20x1 $19,327 $1,078 2,082 649 3,509 $22,836 2525m SU VONETIMI KL Help Bank service charge Balance on bank statement, August 31, 20x1 $5,153 44 5,197 $17,639 2. An examination of the general ledger shows the Cash account with a balance of $19,527 on August 31, 20x1. 3. The August 31 bank statement shows a balance of $17,639. 4. The August 28 deposit of $5,153 does not appear on the August 31 bank statement. 5. A comparison of canceled checks returned with the August 31 bank statement with the cash payments journal reveals the checks as outstanding: Check 1590 Check 1680. $ 606 1.603 < Prev 2 of 2 Next