Financial Accounting: Tools for Business Decision Making 

fyvzjihsna
timer Asked: Dec 18th, 2017

Question Description

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 1,050-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.

Unformatted Attachment Preview

Name Section Date Pamela Miller Chapter 6 Comparative Analysis Probl 11-Dec-17 Amazon.com, Inc. vs. Wal-Mart Stores (a) Amazon.com Wal-Mart Inventory turnover: cost of sales 62,752 cost of sales 358,069 2013 inventory 2014 inventory Average inventory inventory turnover 7,411 8,299 7,855 7.99 2013 inventory 2014 inventory Average inventory inventory turnover 43,803 44,858 44,331 8.08 No of days Inventory turnover 365 8 No of days inventory turnover 365 8 Days in inventory 46 Days in inventory 45 Days in inventory: (b) These organizations have had relatively adjusted operations as far as debt, inventory turnover among 377 r 6 Comparative Analysis Problem 2 n.com, Inc. vs. Wal-Mart Stores, Inc. Wal-Mart bt, inventory turnover among different components. Along these lines, this means these organizations are working in a gainful m 377 are working in a gainful market which empowers these firm to gain money related ground. Aside from the misfortune that Ama 377 ide from the misfortune that Amazon.com made in the year 2014, it has performed superior to anything Wal-Mart Stores, Inc. in 377 anything Wal-Mart Stores, Inc. in whatever remains of the investigation canvassed in this comparative analysis 377
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

This question has not been answered.

Create a free account to get help with this and any other question!

Similar Content

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