Scenario Daisey Company is a very profitable small business It has not, however given much consideration to internal control For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and book keeper As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations The balance per the bank statement on October 31, 2017, was $18,380 Outstanding checks were No 62 for $140 75, No 183 for $180, No 284 for $253 25, No 862 for $190 71, No 863 for $226 80, and No 864 for $165 28 Included with the statement was a credit memorandum of $185 indicating the collection of a note receivable for Daisey Company by the bank on October 25 This memorandum has not been recorded by Daisey The company's ledger showed one Cash account with a balance of $21,877 72 The balance included undepositied cash on hand Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $3,795 51 He then prepared the following bank reconciliation in an effort to conceal his theft of cash Cash balance per books, October 31 $21,877 72 Add Outstanding checks No 862 $190 71 No 863 226 80 No 864 165 28 482 79 22,360 51 Less Undeposited receipts 3,795 51 Unadjusted balance per bank, October 31 18,565 00 Less Bank credit memorandum 185 00 Cash balance per bank statement, October 31 $18,380 00 Prepare a 1,050 word bank reconciliation report ( hint deduct the amount of the theft from the adjusted balance per books) including the following Indicate the three ways that Bret attempted to conceal the theft and the dollar amount involved in each method What principles of internal control were violated in this case Show all work in the Excel spreadsheet and submit with the reconciliation report MY ANSWER Cash Balance per BANK, October 31st $ 18,380 00 Less Outstanding Checks No 62 $ (140 75) No 183 $ (180 00) No 284 $ (253 25) No 862 $ (190 71) No 863 $ (226 80) No 864 $ (165 28) $ (1,156 79) Adjusted balance per bank, October 31st $ 17,223 21 Less Bank credit memorandum $ (185 00) Less Theft $ (3,795 51) Adjusted Balance $ 13,242 70 Theft Amount Ommitted Checks amounting to ($140 75 $180 00 $253 25) $ 574 00 Scenario Daisey Company is a very profitable small business It has not, however given much consideration to internal control For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and book keeper As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations The balance per the bank statement on October 31, 2017, was $18,380 Outstanding checks were No 62 for $140 75, No 183 for $180, No 284 for $253 25, No 862 for $190 71, No 863 for $226 80, and No 864 for $165 28 Included with the statement was a credit memorandum of $185 indicating the collection of a note receivable for Daisey Company by the bank on October 25 This memorandum has not been recorded by Daisey The company's ledger showed one Cash account with a balance of $21,877 72 The balance included undepositied cash on hand Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $3,795 51 He then prepared the following bank reconciliation in an effort to conceal his theft of cash Cash Balance per BOOKS, October 31st Add Outstanding Balance No 862 No 863 No 864 $ 21,877 72 $ 190 71 $ 226 80 $ 165 28 Less Undeposited Receipts Unadjusted balance perbank, October 31st Less Bank credit memorandum Cash Balance per bank statement, October 31st $ $ $ $ $ $ 428 79 22,306 51 (3,795 51) 18,565 00 (185 00) 18,380 00 MY ANSWER Cash Balance per BANK, October 31st Add Outstanding Balance No 62 No 183 No 284 No 862 No 863 No 864 Unadjusted balance perbank, October 31st Less Bank credit memorandum Less Thef Cash Balance per bank statement, October 31st $ 18,380 00 $ $ $ $ $ $ 140 75 180 00 253 25 190 71 226 80 165 28 $ $ $ $ $ 1,156 79 19,536 79 (185 00) (3,795 51) 15,556 28

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Scenario: Daisey Company is a very profitable small business. It has not, however given much consideration to internal control. For example, in an attempt to

Scenario:Daisey Company is a very profitable small business. It has not, however given much consideration to internal control. For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and book-keeper. As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations.

The balance per the bank statement on October 31, 2017, was $18,380. Outstanding checks were No. 62 for $140.75, No. 183 for $180, No. 284 for $253.25, No. 862 for $190.71, No. 863 for $226.80, and No. 864 for $165.28. Included with the statement was a credit memorandum of $185 indicating the collection of a note receivable for Daisey Company by the bank on October 25.

This memorandum has not been recorded by Daisey.

The company's ledger showed one Cash account with a balance of $21,877.72. The balance included undepositied cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $3,795.51. He then prepared the following bank reconciliation in an effort to conceal his theft of cash:

Cash balance per books, October 31		$21,877.72
Add: Outstanding checks
No. 862	$190.71
No. 863	226.80
No. 864	165.28	482.79
		22,360.51
Less: Undeposited receipts		3,795.51
Unadjusted balance per bank, October 31		18,565.00
Less: Bank credit memorandum		185.00
Cash balance per bank statement, October 31		$18,380.00

Preparea 1,050-word bank reconciliation report (hint:deduct the amount of the theft from the adjusted balance per books) including the following:

Indicate the three ways that Bret attempted to conceal the theft and the dollar amount involved in each method.
What principles of internal control were violated in this case?

Showall work in the Excelspreadsheet andsubmitwith the reconciliation report.

MY ANSWER:
Cash Balance per BANK, October 31st	$ 18,380.00
Less: Outstanding Checks
No. 62	$ (140.75)
No. 183	$ (180.00)
No. 284	$ (253.25)
No.862	$ (190.71)
No.863	$ (226.80)
No.864	$ (165.28)	$ (1,156.79)
Adjusted balance per bank, October 31st	$ 17,223.21
Less: Bank credit memorandum	$ (185.00)
Less : Theft	$ (3,795.51)
Adjusted Balance	$ 13,242.70
Theft Amount:
Ommitted Checks amounting to ($140.75 + $180.00 + $253.25)	$ 574.00

Scenario: Daisey Company is a very profitable small business. It has not, however given much consideration to internal control. For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and book-keeper. As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations. The balance per the bank statement on October 31, 2017, was $18,380. Outstanding checks were No. 62 for $140.75, No. 183 for $180, No. 284 for $253.25, No. 862 for $190.71, No. 863 for $226.80, and No. 864 for $165.28. Included with the statement was a credit memorandum of $185 indicating the collection of a note receivable for Daisey Company by the bank on October 25. This memorandum has not been recorded by Daisey. The company's ledger showed one Cash account with a balance of $21,877.72. The balance included undepositied cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $3,795.51. He then prepared the following bank reconciliation in an effort to conceal his theft of cash: Cash Balance per BOOKS, October 31st Add: Outstanding Balance No. 862 No. 863 No. 864 $ 21,877.72 $ 190.71 $ 226.80 $ 165.28 Less: Undeposited Receipts Unadjusted balance perbank, October 31st Less: Bank credit memorandum Cash Balance per bank statement, October 31st $ $ $ $ $ $ 428.79 22,306.51 (3,795.51) 18,565.00 (185.00) 18,380.00 MY ANSWER: Cash Balance per BANK, October 31st Add: Outstanding Balance No. 62 No. 183 No. 284 No.862 No.863 No.864 Unadjusted balance perbank, October 31st Less: Bank credit memorandum Less : Thef Cash Balance per bank statement, October 31st $ 18,380.00 $ $ $ $ $ $ 140.75 180.00 253.25 190.71 226.80 165.28 $ $ $ $ $ 1,156.79 19,536.79 (185.00) (3,795.51) 15,556.28