The question is, Indicate the three ways that Bret attempted to conceal the theft and the dollar amount involved in each method.

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. 863

226.80

No. 864

165.28

482.79

22,360.51

Less: Undeposited receipts

3,795.51

Unadjusted balance per bank, October 31

18,565.00

WRITTEN BELOW IS THE CORRECTION TO THE BANK RECONCILIATION.
	No.	Amount	No.	Amount
	No.62	$140.75	No. 862	$190.71
	No.183	$180.00	No.863	$226.80
	No. 284	$253.25	No. 864	$165.28
	Total Outstanding Checks					$1,156.79
Adjusted Balance Per Bank						$21,018.72
	My answer to the Bank Reconciliation below is:

Indicate the three ways that Bret attempted to conceal the theft and the dollar amount involved in each method.

$18,380.00

DAISEY COMPANY
Bank Reconciliation
October 31, 2017
Balance as Per Bank Statement						$18,380.00
Added Undeposited Receipts						$3,795.51
Less Outstanding Checks
	No.	Amount	No.	Amount
	No.62	$140.75	No. 862	$190.71
	No.183	$180.00	No.863	$226.80
	No. 284	$253.25	No. 864	$165.28
	Total Outstanding Checks					$1,156.79
Adjusted Balance Per Bank						$21,018.72
Cash Balance Per Bank						$21,877.72
Add Bank Credit (Collection of Notes Receivable)			Receivable)			$185.00
Adjusted Balance Per books before Theft						$22,062.72
Less Value of Theft (22062.72 - 21018.72)						$1,044.00
Adjusted Balance Per Books						$21,018.72