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Sunland 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 bookkeeper. 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, 2022, was $17,760. Outstanding checks were No. 62 for $150.10, No. 183 for $199, No. 284 for $282.75, No. 862 for $211.40, No. 863 for $230, and No. 864 for $184.80. Included with the statement was a credit memorandum of $176.20 indicating the collection of a note receivable for Sunland Company by the bank on October 25. This memorandum has not been recorded by Sunland. The company's ledger showed one Cash account with a balance of $21.990.00. The balance included undeposited cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $4,580.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash. Cash balance per books, October 31 Add: Outstanding checks No.862 No. 863 No. 864 Less: Undeposited receipts Unadjusted balance per bank, October 31 Less: Bank credit memorand randum Cash balance per bank statement, October 31 $211.40 230 184.80 $21.990.00 526.20 22.516.20 4.580.00 17,936.20 176.20 $17,760.00 Prepare a correct bank reconciliation. (Hint: Deduct the amount of the theft from the adjusted balance per books) (Round answers to 2 decimal places, eg. 52.75. List items that increase cash balance first) SUNLAND COMPANY Bank Reconciliation

Sunland 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 bookkeeper. 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, 2022, was $17,760. Outstanding checks were No. 62 for $150.10, No. 183 for $199, No. 284 for $282.75, No. 862 for $211.40, No. 863 for $230, and No. 864 for $184.80. Included with the statement was a credit memorandum of $176.20 indicating the collection of a note receivable for Sunland Company by the bank on October 25. This memorandum has not been recorded by Sunland. The company's ledger showed one Cash account with a balance of $21.990.00. The balance included undeposited cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $4,580.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash. Cash balance per books, October 31 Add: Outstanding checks No.862 No. 863 No. 864 Less: Undeposited receipts Unadjusted balance per bank, October 31 Less: Bank credit memorand randum Cash balance per bank statement, October 31 $211.40 230 184.80 $21.990.00 526.20 22.516.20 4.580.00 17,936.20 176.20 $17,760.00 Prepare a correct bank reconciliation. (Hint: Deduct the amount of the theft from the adjusted balance per books) (Round answers to 2 decimal places, eg. 52.75. List items that increase cash balance first) SUNLAND COMPANY Bank Reconciliation

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sunland 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 bookkeeper. 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, 2022, was $17,760. Outstanding checks were No. 62 for $150.10, No. 183 for $199, No. 284 for $282.75, No. 862 for $211.40, No. 863 for $230, and No. 864 for $184.80. Included with the statement was a credit memorandum of $176.20 indicating the collection of a note receivable for Sunland Company by the bank on October 25. This memorandum has not been recorded by Sunland. The company's ledger showed one Cash account with a balance of $21,990.00. The balance included undeposited cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $4,580.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash. Cash balance per books, October 31 Add: Outstanding checks No. 862 No. 863 No. 864 Less: Undeposited receipts Unadjusted balance per bank, October 31 Less: Bank credit memorandum Cash balance per bank statement, October 31 $211.40 > 230 184.80 $21,990.00 526.20 22,516.20 4,580.00 17,936.20 176.20 $17,760.00 (a) Prepare a correct bank reconciliation. (Hint: Deduct the amount of the theft from the adjusted balance per books.) (Round answers to 2 decimal places, eg. 52.75. List items that increase cash balance first.) SUNLAND COMPANY Bank Reconciliation $ $ $
Transcribed Image Text:Sunland 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 bookkeeper. 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, 2022, was $17,760. Outstanding checks were No. 62 for $150.10, No. 183 for $199, No. 284 for $282.75, No. 862 for $211.40, No. 863 for $230, and No. 864 for $184.80. Included with the statement was a credit memorandum of $176.20 indicating the collection of a note receivable for Sunland Company by the bank on October 25. This memorandum has not been recorded by Sunland. The company's ledger showed one Cash account with a balance of $21,990.00. The balance included undeposited cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $4,580.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash. Cash balance per books, October 31 Add: Outstanding checks No. 862 No. 863 No. 864 Less: Undeposited receipts Unadjusted balance per bank, October 31 Less: Bank credit memorandum Cash balance per bank statement, October 31 $211.40 > 230 184.80 $21,990.00 526.20 22,516.20 4,580.00 17,936.20 176.20 $17,760.00 (a) Prepare a correct bank reconciliation. (Hint: Deduct the amount of the theft from the adjusted balance per books.) (Round answers to 2 decimal places, eg. 52.75. List items that increase cash balance first.) SUNLAND COMPANY Bank Reconciliation $ $ $
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