Kim Lee, the bookkeeper for Briton Company, had never missed a day€™s work for the past 10 years until last week. Since that time, he has not been located. You now suspect that Kim may have embezzled money from the company. The following bank reconciliation, prepared by Kim last month, is available to help you determine if a theft occurred:

In examining the bank reconciliation, you decide to review canceled checks returned by the bank. You find that check stubs for check nos. 201, 204, 205, and 295 indicate that these checks were supposedly voided when written. All other bank reconciliation data have been verified as correct.
Required:
1. Compute the amount suspected stolen by Kim.
2. Interpretive Question: Describe how Kim accounted for the stolen money. What would have prevented thetheft?

Transcribed Image Text:

Briton Company Bank Reconciliation for August 2012 Prepared by Kim Lee S192,056 Balance per bank statement Additions to bank balance Deposits in transit Balance per books Additions to book balance Note collected by bank. . . Interest eamed Deductions from book balance NSF check Bank service charges S169,598 8,000 250 Deductions from bank balance Outstanding checks: 1,800) (48) #204 #205 #295 (5,000) (4,058) (195) 1,920) 5 (468) $168,600 #568 Adjusted bank balance Adjusted book balance 5168.600