Solutions%20Harbor%20Tours%20Bank%20Reconciliation

Solutions%20Harbor%20Tours%20Bank%20Reconciliation - There...

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Bank reconciliation example San Diego Harbor Tours has poor internal control over cash. Owner Nathan Johnson suspects the cashier of stealing. Below are some details of the company’s cash at September 30. Johnson asks you to determine if there is any missing cash and, if so, how much is missing. a. The cash account in the ledger shows a balance of $6,450. b. The September 30 bank statement shows a balance of $4,300. The bank statement lists a $200 bank collection, a $10 service charge, and a $40 NSF check. c. At September 30, the following checks are outstanding: $100, 300, 600, and 200 d. There is a $3,000 deposit in transit at September 30 e. The cashier handles all incoming cash and makes bank deposits. He also writes checks and reconciles the monthly bank statement. Requirements 1. Perform your own bank reconciliation using the format illustrated in Chapter 5.
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Unformatted text preview: There are no bank or book errors. 2. Explain how Johnson can improve the internal controls at San Diego Harbor Tours. San Diego Harbor Tours Bank Reconciliation As of September 30, 20xx Cash per Bank $4,300 Cash per Ledger $6,450 Add: Add: Deposit in Transit $3,000 3,000 Collection 200 200 Less: Less: Outstanding Checks 100 Service Charges-10 300 NSF Check-40 600 Missing Funds-500-550 200-1,200 Total $6,100 $6,100 The company should limit the cashier to compatible functions. For proper segregation of duties, the cashier should accept incoming payments only. The cashier should not take funds to the bank, write checks, record any transactions in the accounting records, and reconcile bank accounts....
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Solutions%20Harbor%20Tours%20Bank%20Reconciliation - There...

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