x THI P7.90. Bank Reconciliation The Chicago Skate Company's bank statement for the month of a balance of $4,320. The company's cash account in the general ledger showed a balance of $2 MA 3. Check No 160 payable to Simon Company was recorded in the accounting records for SIA cleared the bank for this same amount. A review of the records indicated that the Sim 5. Check No. 176 was correctly written and paid by the bank for $345. The check was records 7. The bank included a credit memorandum for $630 representing a collection of a customer's The principal portion was $610 and the interest portion was $20. The interest had not been acco Provide physical A Conduct internal audits. LOS MARE June 30. Other relevant information includes the following: 1. Deposits in transit on June 30 total $2.550. 2. The bank statement shows a debit memorandum for a $10 check printing charge. now has a $28 credit balance and the check to them should have been $142. 4. Outstanding checks as of June 30 totaled $3.175. the accounting records as a debit to accounts payable and a credit to cash for $354. 6. The bank returned an NSF check in the amount of $311. Required Prepare the June bank reconciliation for the Chicago Skate Company b. Prepare any necessary adjusting entries. SERIAL PROBLEM: KATE'S CARDS Kare's Cards (Note: This is a continuation of the Serial Problem: Kate's Cards from Chapters / through 6.) SP7. On February 15, 2019. Kate Collins, owner of Kate's Cards, asks you to investigate the cash han. dling activities in her business. She believes that a new employee might be stealing funds. "I have no proof," she says, "but I'm fairly certain that the January 31, 2019, undeposited receipts amounted to more than $12,000, although the January 31 bank reconciliation prepared by the cashier (who works in the treasurer's department) shows only $7,238.40. Also, the January bank reconciliation doesn't show several checks that have been outstanding for a long time. The cashier told me that these checks needn't appear on the reconciliation because he had notified the bank to stop payment on them and he had made the necessary adjustment on the books. Does that sound reasonable to you?" At your request, Kate shows you the following (unaudited) January 31, 2019, bank reconciliation prepared by the cashier: Ending balance from bank statement... Add: Deposits in transit... $10,893.89 KATE'S CARDS Bank Reconciliation January 31, 2019 $ 4,843.69 Balance from general ledger ... 7.238.40 $12,082.09 Less: Bank service charge Unrecorded credit. Less: Outstanding checks: No. 2351 No. 2353 No. 2354 Reconciled cash balance $ 60.00 1,200.00 (1.260.00 $1,100.20 578.32 969.68 (2,448.20) $ 9,633.89 Reconciled cash balance $ 9,633.89 Chapter 7 Internal Control and Cash You discover that the $1,200 unrecorded bank credit represents a note collected by the bank on Kate's behalf, it appears in the deposits column of the January bank statement. Your investigation also reveals that the December 31, 2018, bank reconciliation showed three checks that had been outstanding longer than 10 months: No. 1432 for $600, No. 1458 for $466.90, and No. 1512 for $253.10. You also discover that these items were never added back into the Cash account in Kate's books. In confirming that the checks shown on the cashier's January 31 bank reconciliation were outstanding on that date, you discover that check No. 2353 was actually a payment of $1,658.32 and had been recorded on the books for that amount. To confirm the amount of undeposited receipts at January 31, you request a bank statement for February 1-12 (called a cutoff bank statement). This indeed shows a January 1 deposit of $7,238.40. Required Calculate the amount of funds stolen by the employee. b. Describe how the employee concealed the theft. What suggestions would you make to Kate about cash control procedures? a. c. EXTENDING YOUR KNOV REPORTING AND ANALYSIS EYK7-1. Financial Reporting Problem: Columbia Sportswear Company The financial statements for the Columbia Sportswear Company can be found in Appendix A at the end of this book. Required and the accompanying notes to the financial statements to answer the Cambridge Business Publishers x THI P7.90. Bank Reconciliation The Chicago Skate Company's bank statement for the month of a balance of $4,320. The company's cash account in the general ledger showed a balance of $2 MA 3. Check No 160 payable to Simon Company was recorded in the accounting records for SIA cleared the bank for this same amount. A review of the records indicated that the Sim 5. Check No. 176 was correctly written and paid by the bank for $345. The check was records 7. The bank included a credit memorandum for $630 representing a collection of a customer's The principal portion was $610 and the interest portion was $20. The interest had not been acco Provide physical A Conduct internal audits. LOS MARE June 30. Other relevant information includes the following: 1. Deposits in transit on June 30 total $2.550. 2. The bank statement shows a debit memorandum for a $10 check printing charge. now has a $28 credit balance and the check to them should have been $142. 4. Outstanding checks as of June 30 totaled $3.175. the accounting records as a debit to accounts payable and a credit to cash for $354. 6. The bank returned an NSF check in the amount of $311. Required Prepare the June bank reconciliation for the Chicago Skate Company b. Prepare any necessary adjusting entries. SERIAL PROBLEM: KATE'S CARDS Kare's Cards (Note: This is a continuation of the Serial Problem: Kate's Cards from Chapters / through 6.) SP7. On February 15, 2019. Kate Collins, owner of Kate's Cards, asks you to investigate the cash han. dling activities in her business. She believes that a new employee might be stealing funds. "I have no proof," she says, "but I'm fairly certain that the January 31, 2019, undeposited receipts amounted to more than $12,000, although the January 31 bank reconciliation prepared by the cashier (who works in the treasurer's department) shows only $7,238.40. Also, the January bank reconciliation doesn't show several checks that have been outstanding for a long time. The cashier told me that these checks needn't appear on the reconciliation because he had notified the bank to stop payment on them and he had made the necessary adjustment on the books. Does that sound reasonable to you?" At your request, Kate shows you the following (unaudited) January 31, 2019, bank reconciliation prepared by the cashier: Ending balance from bank statement... Add: Deposits in transit... $10,893.89 KATE'S CARDS Bank Reconciliation January 31, 2019 $ 4,843.69 Balance from general ledger ... 7.238.40 $12,082.09 Less: Bank service charge Unrecorded credit. Less: Outstanding checks: No. 2351 No. 2353 No. 2354 Reconciled cash balance $ 60.00 1,200.00 (1.260.00 $1,100.20 578.32 969.68 (2,448.20) $ 9,633.89 Reconciled cash balance $ 9,633.89 Chapter 7 Internal Control and Cash You discover that the $1,200 unrecorded bank credit represents a note collected by the bank on Kate's behalf, it appears in the deposits column of the January bank statement. Your investigation also reveals that the December 31, 2018, bank reconciliation showed three checks that had been outstanding longer than 10 months: No. 1432 for $600, No. 1458 for $466.90, and No. 1512 for $253.10. You also discover that these items were never added back into the Cash account in Kate's books. In confirming that the checks shown on the cashier's January 31 bank reconciliation were outstanding on that date, you discover that check No. 2353 was actually a payment of $1,658.32 and had been recorded on the books for that amount. To confirm the amount of undeposited receipts at January 31, you request a bank statement for February 1-12 (called a cutoff bank statement). This indeed shows a January 1 deposit of $7,238.40. Required Calculate the amount of funds stolen by the employee. b. Describe how the employee concealed the theft. What suggestions would you make to Kate about cash control procedures? a. c. EXTENDING YOUR KNOV REPORTING AND ANALYSIS EYK7-1. Financial Reporting Problem: Columbia Sportswear Company The financial statements for the Columbia Sportswear Company can be found in Appendix A at the end of this book. Required and the accompanying notes to the financial statements to answer the Cambridge Business Publishers