Yip-Chuk Inc. had weak internal control over its cash transactions. Facts about its cash position at November 30 were as follows:
The cash account showed a balance of $18,901.62, which included un-deposited receipts. A credit of $100 on the bank€™s records did not appear on the records of the company. The balance per bank statement was $15,550. Outstanding cheques were no. 62 for $116.25, no. 183 for $150.00, no. 284 for $253.25, no. 8621 for $190.71, no. 8623 for $206.80, and no. 8632 for $145.28.
The cashier, Khalid Nasser, embezzled all un-deposited receipts in excess of $3,794.41 and prepared the reconciliations shown in the table on the right.
REQUIRED
a. Prepare a supporting schedule showing how much Khalid embezzled.
b. How did he attempt to conceal his theft?

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

$18,901.62 Balance, per general ledger, November 30 Add: Outstanding cheques 8621 8623 8632 $190.71 206.80 145.28 Less: Undeposited receipts Balance per bank, November 30 Deduct: Unrecorded credit True cash balance, November 30 442.79 19,344.41 3,794.41 15,550.00 100.00 $15,450.00