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 $18380. 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 $21877.72. 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 $3795.51. He then prepared the following bank reconciliation in an effort to conceal his theft of cash:
Preparea 200-word bank reconciliation report (hint:deduct the amount of the theft from the adjusted balance per books) including the following:
Showall work in the Excelspreadsheet andsubmitwith the reconciliation report.

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