Question

Lasting Impressions Co. records all cash receipts on the basis of its cash register tapes. Lasting Impressions Co. discovered during April 2012 that one of its sales clerks had stolen an undetermined amount of cash receipts when she took the daily deposits to the bank. The following data have been gathered for April:

Cash in bank according to the general ledger	10800
Cash according to the April 30, 2012, bank statement	21100
Outstanding checks as of April 30, 2012	7300
Bank service charge for April	100
Note receivable, including interest collected by bank in April	10800

No deposits were in transit on April 30.

Determine the amount of cash receipts stolen by the sales clerk.

Answer 1

As per Bank:

Unadjusted Balance = 21,100
Outstanding Checks = 7,300
Deposit in Transit = 0

Adjusted Balance = Unadjusted Balance - Outstanding Checks + Deposit in Transit
Adjusted Balance = 21,100 - 7,300 + 0
Adjusted Balance = 13,800

As per Book:

Unadjusted Balance = 10,800
Adjusted Balance = 13,800
Bank Service Charge = 100
Collection from Notes = 10,800

Adjusted Balance = Unadjusted Balance - Bank Service Charge + Collection from Notes - Cash Stolen
13,800 = 10,800 - 100 + 10,800 - Cash Stolen
Cash Stolen = 7,700

So, the amount of cash receipts stolen by the sales clerk is 7,700