Preparing Comprehensive Bank Reconciliation with Theft and Internal Control Deficiencies
Purpose of Assignment
Reconciling coffer accounts is a acceptable way to advice advance centralized controls over cash. With time lags and announcement errors it is accessible for banknote affairs to be omitted, recorded in a altered accounting period, or reflect incorrect amounts. This appointment with accord you applied acquaintance in reconciling the banknote antithesis as acclaimed on the aggregation books to the bank's records.
Resources: Financial Accounting: Tools for Business Decision Making
Scenario: Daisey Aggregation is a actual assisting baby business. It has not, about accustomed abundant application to centralized control. For example, in an attack to accumulate accounting and appointment costs to a minimum, the aggregation has accumulated the jobs of accountant and book-keeper. As a result, Bret Turrin handles all banknote receipts, keeps the accounting records, and prepares the annual coffer reconciliations.
The antithesis per the coffer annual on October 31, 2017, was $18,380. Outstanding checks were No. 62 for $140.75, No. 183 for $180, No. 284 for $253.25, No. 862 for $190.71, No. 863 for $226.80, and No. 864 for $165.28. Included with the annual was a acclaim announcement of $185 advertence the accumulating of a agenda receivable for Daisey Aggregation by the coffer on October 25.
This announcement has not been recorded by Daisey.
The company's antithesis showed one Banknote annual with a antithesis of $21,877.72. The antithesis included undepositied banknote on hand. Because of the abridgement of centralized controls, Bret took for claimed use all of the undeposited receipts in antithesis of $3,795.51. He again able the afterward coffer adaptation in an accomplishment to burrow his annexation of cash:
Cash antithesis per books, October 31 $21,877.72
Add: Outstanding checks
No. 862 $190.71
No. 863 226.80
No. 864 165.28 482.79
Less: Undeposited receipts 3,795.51
Unadjusted antithesis per bank, October 31 18,565.00
Less: Coffer acclaim memorandum 185.00
Cash antithesis per coffer statement, October 31 $18,380.00
Prepare a 1,050-word coffer adaptation address (hint: abstract the bulk of the annexation from the adapted antithesis per books) including the following:
Indicate the three means that Bret attempted to burrow the annexation and the dollar bulk complex in anniversary method.
What attempt of centralized ascendancy were abandoned in this case?
Show all assignment in the Excel® spreadsheet and abide with the adaptation report.
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