TASK DETAILS: Text: Accounting CASE STUDY Topic: Bank Reconciliation Learning Objectives: SLO3: Identify the importance of bank reconciliation and prepare bank reconciliation DECISION CASE STUDY-V2 The records of Lumberjack Company indicate a July 31 cash balance of S9.806.05, which includes undeposited receipts for July 30 and 31. The cash balance on the bank statement as of July 31 is $6,004.95. This balance includes a note of $4,000 plus $240 interest collected by the bank but not recorded in the journal. Checks outstanding on July 31 were as follows: No. 670, S781.20; No. 679, 5610; No. 690, 5716.50; No. 1996, S127.40; No. 1997, S520; and No. 1999, $851.50. On July 3, the cashier resigned, effective at the end of the month. Before leaving on July 31, the cashier prepared the following bank reconciliation: Add outstanding $9.80605 Cash balance per hooks, July 31 Ichecks No 1996 1997 1999 S127.40 520 51.50 1.195.00 511,00695 5 SOS 4.2009 5171895 Less undeposited receipts Cash balance per bank, July 31 Dedoct unrecorded wote with interest True cash, July Subsequently, the owner of Lumberjack Company discovered that the cashier had stolen an unknown amount of undeposited receipts, leaving only $5,000 to be deposited on July 31. The owner, a close family friend, has asked your help in determining the amount that the former cashier has stolen. 1. Determine the amount the cashier stole from Lumberjack Company. Show your computations in good form. 2. How did the cashier attempt to conceal the theft? Answer Sheet: Reg. 1: 16 marks Lumberjack Company Bank Reconciliation Answer Sheet: Req. 1: 16 marks Lumberjack Company Bank Reconciliation July 31 Adjusted balance according to company's records Adjusted balance according to bank statement Amount stolen by cashier Req. 2: 4 marks