The records of Parker Company indicate a July 31, 2016 cash balance of $10,400, which includes un
Question:
On July 25, the cashier resigned, effective at the end of the month. Before leaving on July 31, the cashier prepared the following bank reconciliation:
Subsequently, the owner of Parker Company discovered that the cashier had stolen an unknown amount of un deposited receipts, leaving only $1,500 to be deposited on July 31. The owner, a close family friend, has asked your help in determining the amount that the former cashier has stolen.
1. Determine the amount the cashier stole from Parker Company. Show your computations in good form.
2. How did the cashier attempt to conceal the theft?
3. a. Identify two major weaknesses in internal controls that allowed the cashier to steal the un deposited cash receipts.
b. Recommend improvements in internal controls so that similar types of thefts of un deposited cash receipts can be prevented.
Step by Step Answer:
Accounting
ISBN: 978-1285743615
26th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac