Business Finance
ACC290 Phoenix Daisey Company Bank Reconciliation Report

ACC290

University of Phoenix

Question Description

Purpose of Assignment

Reconciling bank accounts is a good way to help maintain internal controls over cash. With time lags and posting errors it is easy for cash transactions to be omitted, recorded in a different accounting period, or reflect incorrect amounts. This assignment with give you practical experience in reconciling the cash balance as noted on the company books to the bank's records.

Assignment Steps

Resources: Financial Accounting: Tools for Business Decision Making

Scenario: Daisey Company is a very profitable small business. It has not, however given much consideration to internal control. For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and book-keeper. As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations.

The balance per the bank statement 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 statement was a credit memorandum of $185 indicating the collection of a note receivable for Daisey Company by the bank on October 25.

This memorandum has not been recorded by Daisey.

The company's ledger showed one Cash account with a balance of $21,877.72. The balance included undepositied cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $3,795.51. He then prepared the following bank reconciliation in an effort to conceal his theft of cash:

Cash balance per books, October 31 $21,877.72
Add: Outstanding checks
No. 862$190.71
No. 863226.80
No. 864165.28482.79
22,360.51
Less: Undeposited receipts 3,795.51
Unadjusted balance per bank, October 31 18,565.00
Less: Bank credit memorandum 185.00
Cash balance per bank statement, October 31 $18,380.00

Prepare a 1050 word bank reconciliation report (hint: deduct the amount of the theft from the adjusted balance per books) including the following:

  • Indicate the three ways that Bret attempted to conceal the theft and the dollar amount involved in each method.
  • What principles of internal control were violated in this case?

Show all work in the Excel® spreadsheet and submit with the reconciliation report.

Final Answer

Hello, here is your assignment. In future you can assign me any task. I can help with almost all classes of UOP.Thanks

Name
Section
Date

Problem 7-6A
Daisey Company

(a)
DAISEY COMPANY
Bank Reconciliation
October 31, 2017

Bank statement balance

$18,565

Add: a)
Under deposit receipts

3795.51
$22,361

Less:
Unpresented checks
Check no 62

140.75

Check no 183

180

Check no 284

253.25

Check no 862

190.71

Check no 864

165.28

Check no 863

226.8

Adjusted Bank balance

1156.79
$21,203.72

(b) and (c)

(b)

Bret did not list the outstanding checks numbered 62 of $140.75, 183 of $180, and 284
of $253.25. The total amount was $574 in his reconciliation statement. Bret listed the
incorrect total of outstanding checks in his reconciliation statement. The actual amount
is $582.79 but Bret recorded the incorrect amount $482.79. The balance of $100 was
recorded deliberately by Bret. Bret deducted the bank credit memorandum of $185
instead of adding it to conceal the theft of $370. From the facts reported you can see
that Bret stole $1,044.

(c)

In this particular case, there was a couple of internal control principles that were violated.
The first internal control principle that was violated was segregation of duties. The
second internal control principle that was violated was the periodic independent
verification principle. The reconciliation that was done was not checked or verified by
other employees.

418

Company

DAISEY COMPANY
Bank Reconciliation
October 31, 2017

Book Balance

21877.72

Add: Note receivable
collected

185

Adjusted balance per
books before theft
Less:

22062.72

Amount stolen

859

Adjusted Book balance

21203.72

418


Bank Reconciliation Report

1

Name
Bank Reconciliation Report
ACC 290
Date
Instructor

Bank Reconciliation Report

2
Bank...

fareeha27 (6366)
UCLA

Anonymous
Top quality work from this tutor! I’ll be back!

Anonymous
Heard about Studypool for a while and finally tried it. Glad I did caus this was really helpful.

Anonymous
Thank you! Reasonably priced given the quality

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4
Similar Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors