Stratford Tech Solutions has poor internal control over cash. Recently Sanjay Gupda, the owner, has suspected the cashier of stealing. Details of the business's cash position at April 30, 2017, follow:

a. The Cash account in the ledger shows a balance of $12,900.

b. The April 30 bank statement shows a balance of $8,600. The bank statement lists a $400 credit for a bank collection, a $20 debit for the service charge, and an $80 debit for an NSF cheque. C. J. Ellis, the Stratford Tech Solutions accountant, has not recorded any of these items on the books.

c. At April 30 the following cheques are outstanding:

Cheque No _________________Amount

402 .....................................$200

527 ..................................... 600

531 ..................................... 1,200

561 ..................................... 400

d. There is a $6,000 deposit in transit at April 30, 2017.

e. Cindy Bing, the cashier, handles all incoming cash and makes bank deposits. She also writes cheques and reconciles the monthly bank statement.

Gupda asks you to determine whether Bing has stolen cash from the business and, if so, how much. Perform a bank reconciliation, using the format illustrated in Exhibit 8-6 on page 460. There are no bank or book errors. Gupda also asks you to evaluate the internal controls and recommend any changes needed to improve them.