Preparing Comprehensive Bank Reconciliation with Theft and Internal Control Deficiencies
Preparing Comprehensive Coffer Adaptation with Annexation and Centralized Ascendancy Deficiencies
Due Sep 23, 5:59 PM
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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 $21,877.72Add: Outstanding checks No. 862$190.71 No. 863226.80 No. 864165.28482.79 22,360.51Less: Undeposited receipts 3,795.51Unadjusted antithesis per bank, October 31 18,565.00Less: Coffer acclaim announcement 185.00Cash 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?
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