Steve Cardoso is the owner of Cardoso 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 companys office manager/bookkeeper, Georgia Alberts. Georgia makes bank deposits, pays the companys bills, maintains the accounting records, and prepares monthly bank 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 companys cash receipts. She said her boss would never know because he never checks the cash records. Steve admits that he does not check on Georgias work. He now wants to know if Georgia is stealing from him. He asks you to examine the companys cash records to determine whether she has stolen cash from the business and, if so, how much. Your examination of the companys cash records reveals the following information:

Steve Cardoso is the owner of Cardoso 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 office manager/bookkeeper, Georgia Alberts. Georgia makes bank deposits, pays the company's bills, maintains the accounting records, and prepares monthly bank 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: 1. Georgia prepared the following August 31,201, bank reconciliation. 2. An examination of the general ledger shows the Cash account with a balance of $19,786 on August 31,201. 3. The August 31 bank statement shows a balance of $17,589. 4. The August 28 deposit of $4,882 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 following checks as outstanding: 6. The bank deducted $10 as a service fee. epare a bank reconciliation using the format presented in this chapter for the month of August. Assume there were no bank or bokkeeping errors in August