The president of The Parker Company suspects the bookkeeper is embezzling cash from the company. She asks you, confidentially, to look over the bank reconciliation that the bookkeeper has prepared to see if you discover any discrepancies between the books and the bank statement. She provides you with the Cash account from the general ledger, the bank statement, and the bank reconciliation as of December 31. (Click the icon to view the December bank statement.) (Click the icon to view the December cash activity.) (Click the icon to view the December bank reconciliation.) (Click the icon to view additional information.) Read the requirement. First prepare the corrected bank reconciliation. (Include the balances at December 31 in each of the addition subtotal calculations. If an input field is not used in the table, leave the field empty: do not select a label or enter a zero. Abbreviations used: EFT = electronic funds transfer; NSF = non-sufficient funds) Parker Company Bank Reconciliation (Corrected) December 31 Bank Books Balance, 12/31 Balance, 12/31 Add Add: Outstanding checks EFT receipt from customer Interest revenue Subtotal Subtotal Less: Less: Book error in checks Parker Company Bank Reconciliation (Corrected) December 31 Bank Books Balance, 12/31 Balance, 12/31 Add: Add: Outstanding checks EFT receipt from customer Interest revenue WOLI Subtotal Subtotal Less: Less: Book error in checks Adjusted bank balance Adjusted book balance - Data Table Bank Statement for December 31 Bal 12/1 $ 3,750 Deposits Dec 1 1,281 8 1,200 16 4,155 24 2,525 Interest 31 7 52 EFT 31 Total deposits 9,220 Checks and other debits: M. 100n PPA 52 EFT 31 Total deposits 9,220 Checks and other debits: No. 1880 554 No. 1882 121 No. 1883 466 No. 1884 1,275 No. 1885 1,345 No. 1886 660 No. 1887 2,478 No. 1888 1,010 No. 1889 435 No. 1886 660 No. 1887 2,478 No. 1888 1,010 No. 1889 435 NSF 135 720 EFT Total checks and other debits (9,199) 3,771 $ Bal 12/31 Explanations: EFT-electronic funds transfer, NSF-nonsufficient funds Parker Company Bank Reconciliation December 31 Bank Books Balance, 12/31 $ 3,771 Balance, 12/31 10,539 Add: Add: Deposits in transit 2,170 EFT receipt from customer 52 7 Subtotal 5,941 Interest revenue Less: Subtotal 10,598 Outstanding checks Less: No. 1560 $ 179 Book error $ 5,000 Less: Subtotal 10,598 Outstanding checks Less: No. 1560 $ 179 Book error $ 5,000 No. 1901 849 135 170 720 No. 1902 (5,855) NSF check (1,198) EFT payment of utilities 4,743 Adjusted book balance $ 4,743 Adjusted bank balance General Ledger Cash Bal 12/1 5,211 1,200 Cash receipt 12/7 Cash receipt 12/15 Cash receipt 12/23 4,155 7,525 Cash receipt 12/30 670 No. 1884 1,275 No. 1885 1,345 No. 1886 660 No. 1887 2,478 No. 1888 1,010 No 1880 125 Cash receipt 12/30 670 No. 1884 1,275 No. 1885 1,345 No. 1886 660 No. 1887 2,478 No. 1888 1,010 No. 1889 435 No. 1901 849 No. 1902 170 Bal 12/31 10,539| You learn from the November bank reconciliation that the following checks were outstanding on November 30: No. 1560 for $179, No. 1880 for $554, No. 1882 for $121, and No. 1883 for $466. There was one deposit in transit on November 30 for $1,281. An examination of the actual deposit slips revealed no bank errors. Assume the cash deposit of $2,525 on December 24 is the correct amount. The January bank statement showed that a $670 deposit cleared the bank on January 2
