Alaska Impressions Co. records all cash neceips on data have been gathered for O

Question

Alaska Impressions Co. records all cash neceips on data have been gathered for October Cash in bank aoonding to the general ledger Cash acoording to the Ocer 31, 2016, bank statement Outstanding checks as of October 31, 2016 Bank service charge for October 12.340 12410 3,800 ote receivable, including intenest collected by bank in Oobe 2435 No deposits were in transit on October 31. Instructions A. Determine the amount of cash recees stolen by the salescen B. What accounting contross wou have prevented or detected this

Explanation / Answer

Solution:

(A)Amount of cash receipts stolen by the sales clerk

Cash balance according to October 31, 2016, bank statement

$12,410

Less: Outstanding checks as on October 31, 2016

(3,600)

Adjusted balance

8,810

Cash in bank according to general ledger

$12,340

Add: Note receivable collected by bank, including interest in October

2,435

Less: Bank service charge

(30)

Adjusted balance

14,745

Amount of cash receipts stolen by the clerk

= $ 14,745 - $ 8,810

=$ 5,935 (Answer)

Cash balance according to October 31, 2016, bank statement

$12,410

Less: Outstanding checks as on October 31, 2016

(3,600)

Adjusted balance

8,810

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.