Patricia Company had poor internal control over its cash transactions. Facts about its cash position at November 30, 2022, were as follows: The cash ledger showed a balance of $18,901.62, which included undeposited receipts which were on hand at November 30. A credit of $100 on the bank?s records did not appear on the books of the company. The balance per bank statement was $15,550. Outstanding checks were #62 for $116.25, #183 for $150, #284 for $253.25, #8621 for $190.71, #8623 for $206.80, and #8632 for $145.28.

The cashier subtracted undeposited receipts of $3,794.41 and prepared the following reconciliation:

Required

a. Prepare a working paper showing how much the cashier embezzled.

b. How did the cashier attempt to conceal this theft?

c. Using only the information given, name two specific features of internal control that were apparently lacking.

Transcribed Image Text:

Balance per books, November 30, 2022 $18,901.62 Add: Outstanding checks 8621 $190.71 8623 206.80 8632 145.28 442.79 19,344.41 Less: Undeposited receipts (3,794.41) Balance per bank, November 30, 2022 15,500.00 Deducted: Unrecorded credit 100.00 True cash, November 30, 2022 $15,450.00