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Yellow Construction Inc. has poor internal control. Recently, Jim Knight, the owner, has suspected the bookkeeper of stealing. Here are some details of the business's
Yellow Construction Inc. has poor internal control. Recently, Jim Knight, the owner, has suspected the bookkeeper of stealing. Here are some details of the business's cash position at June 30, 2020: (Click on the icon to view additional information.) Requirements Requirement 1. Prepare the bank reconciliation. There are no bank or book errors. Begin by preparing the bank section of the bank reconciliation. Then complete the book section of the bank reconciliation. (Leave unused cells blank.) Yellow Construction Inc. Bank Reconciliation June 30, 2020 BANK: Add: Less: BOOKS: Less: Add: Less: Requirement 2. Using the facts provided, identify the information that would be relevant to determining whether or not the bookkeeper has stolen cash from the business. The bookkeeper the total of outstanding cheques by Based on the above reconciliation, it appears the bookkeeper has stolen $ $to cover the theft Requirement 3. Recommend to Knight any changes needed to prevent this from happening again. The owner should a. The Cash account shows a balance of 10,372. This amount includes a June 30 deposit of $3,798 that does not appear on the June 30 bank statement. D. The June 30 bank statement shows a balance of 58,185. The bank statement ists a $290 bank collection, a[n) 513 service charge, and a 546 NSF cheque. The bookkeeper has not recorded any of these terms c. Al June 30, the following cheques are outstanding Cheque No. Amount 154 $ 115 278 872 291 990 292 209 293 d. The bookkeeper records all incoming cash and makes bank deposits. He also reconciles the monthly bank statement. Here is his June 30 reconciliation: Balance per books, June 30 $ 10,372 Ads Outstanding cheques 1,380 Bank collection 290 Subtotal 12,042 Less: Deposits in transit $ 3,798 Service charge 13 NSF cheque 46 (3.857) Balance per bank, June 30 $ 8,185
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