ACC/290 Version 7 Principles of Accounting IPreparing Comprehensive Bank Reconciliation with Theft and Internal Control Deficiencies Purpose of Assignment Reconciling bank accounts is a good way to help maintain internal controls over cash. With time la

   

Preparing Comprehensive Bank Reconciliation with Theft and Internal Control Deficiencies Grading Guide

ACC/290 Version 7

Principles of Accounting I

Individual Assignment: Preparing Comprehensive Bank Reconciliation with Theft and Internal Control Deficiencies 

Purpose of Assignment

Reconciling bank accounts is a good way to help maintain internal controls over cash. With time lags and posting errors it is easy for cash transactions to be omitted, recorded in a different accounting period, or reflect incorrect amounts. This assignment with give you practical experience in reconciling the cash balance as noted on the company books to the bank’s records.

Resources Required

Financial Accounting: Tools for Business Decision Making.

Grading Guide

    

Content

Met

Partially Met

Not Met

Comments:

 

Prepared   a bank reconciliation report (hint: deduct the amount of the theft from the   adjusted balance per books) including the following:

• Indicate the        three ways that Bret attempted to conceal the theft and the dollar        amount involved in each method.
• What principles        of internal control were violated in this case?

 

Report   was based on the following scenario:

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 $18,380. 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 $21,877.72. 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 $3,795.51. He then prepared   the following bank reconciliation in an effort to conceal his theft of cash.

 

The   bank reconciliation report was 1,050 words in length.

 

Total Available

Total Earned

 

5

#/5

    

Writing Guidelines

Met

Partially Met

Not Met

Comments:

 

The paper—including tables   and graphs, headings, title page, and reference page—is consistent with APA   formatting guidelines and meets course-level requirements.

 

Intellectual property is   recognized with in-text citations and a reference page.

 

Paragraph and sentence   transitions are present, logical, and maintain the flow throughout the paper.

 

Sentences are complete,   clear, and concise.

 

Rules of grammar and usage   are followed including spelling and punctuation.

 

Total Available

Total Earned

 

3

#/3

    

Assignment Total

#

8

#/8

 

Additional comments: