Waterway Company is a very proftable 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 bookkeeper, As a result, Bret Turgin handles afl cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations.

The balnce per the bank statement on October was $ Outstanding checks were No for $ No for $ No for $ No For $ No for $ and Na for $ Iscluded with the statement was a credit memorandum of $ indicating the collection of a note receivable for Waterway Company by the bank on October This memorandum has not been recorded by Waterway

The company\'s ledger showed one Cash account with a balance of $ The balance included undeposited cash on hand.

Because of the lack of internal controls. Bret took for personal use all of the undeposited receipts in excess of $ He then prepared the following bank reconciliation in an effort to conceal hiis theft of cash.

Cash balance per books, October

$

Add:

Outstanding checks

No

$

No

No

:

Less: Undeposited receipts

Unadjusted balance per bank. October

Less: Bank credit memorandum

Cash balance per bank statement, October

$

al

Prepare a correct bank reconciliation. Hint: Deduct the mount of the theft from the adjusted balance per books.Round answers to decimal places, cg List items that increase cash balance first.

Answer rating: 100% (QA)

To prepare a correct bank reconciliation well follow these steps 1 Start with the unadjusted balance ... View the full answer