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Problem 9. Moluccas Corporation, your client, is a successful small business but has poor internal control. Its bookkeeper, Mando Rugas, handles cash receipts, makes small disbursements from the cash receipts, maintains accounting records, and prepares the monthly bank reconciliation. The March 31, 2020 banks statement shows a cash balance of P 590,000 while the company's general ledger shows a cash balance of P 696,499. At March 31, the following checks were outstanding: No. 7163 - P 8,623; No. 7284 - P 7,320; No. 7285 - P 10,612; No. 8722 - P 6,322; No. 8724 - P 12,280; No. 8733 - P 6,200. Mando Rugas realizes that being the company cashier-accountant, he can easily misappropriate collections and conceal it. He removed all the cash on hand in excess of P 127,301. To conceal the theft, he prepared the following bank reconciliation. 696,499 Balance per books Add: Outstanding checks No. No. No. 8722 8724 8733 6,322 12,280 6,200 Total Less: Cash on hand Balance per bank statement, March 31 20,802 717,301 127,301 590,000 19. How much was taken by the cashier- accountant?

Problem 9. Moluccas Corporation, your client, is a successful small business but has poor internal control. Its bookkeeper, Mando Rugas, handles cash receipts, makes small disbursements from the cash receipts, maintains accounting records, and prepares the monthly bank reconciliation. The March 31, 2020 banks statement shows a cash balance of P 590,000 while the company's general ledger shows a cash balance of P 696,499. At March 31, the following checks were outstanding: No. 7163 - P 8,623; No. 7284 - P 7,320; No. 7285 - P 10,612; No. 8722 - P 6,322; No. 8724 - P 12,280; No. 8733 - P 6,200. Mando Rugas realizes that being the company cashier-accountant, he can easily misappropriate collections and conceal it. He removed all the cash on hand in excess of P 127,301. To conceal the theft, he prepared the following bank reconciliation. 696,499 Balance per books Add: Outstanding checks No. No. No. 8722 8724 8733 6,322 12,280 6,200 Total Less: Cash on hand Balance per bank statement, March 31 20,802 717,301 127,301 590,000 19. How much was taken by the cashier- accountant?

Auditing: A Risk Based-Approach (MindTap Course List)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments
Section: Chapter Questions
Problem 20RQSC
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Problem 9. Moluccas Corporation, your client, is a successful small business but has poor internal control. Its bookkeeper, Mando Rugas, handles cash receipts, makes small disbursements from the cash receipts, maintains accounting records, and prepares the monthly bank reconciliation. The March 31, 2020 banks statement shows a cash balance of P 590,000 while the company's general ledger shows a cash balance of P 696,499. At March 31, the following checks were outstanding: No. 7163 - P 8,623; No. 7284 - P 7,320; No. 7285 - P 10,612; No. 8722 - P 6,322; No. 8724 - P 12,280; No. 8733 - P 6,200. Mando Rugas realizes that being the company cashier-accountant, he can easily misappropriate collections and conceal it. He removed all the cash on hand in excess of P 127,301. To conceal the theft, he prepared the following bank reconciliation. Balance per books Add: Outstanding checks 696,499 6,322 12,280 6,200 No. 8722 No. 8724 No. 8733 20,802 Total Less: Cash on hand 717,301 127,301 590,000 Balance per bank statement, March 31 19. How much was taken by the cashier- accountant?
Transcribed Image Text:Problem 9. Moluccas Corporation, your client, is a successful small business but has poor internal control. Its bookkeeper, Mando Rugas, handles cash receipts, makes small disbursements from the cash receipts, maintains accounting records, and prepares the monthly bank reconciliation. The March 31, 2020 banks statement shows a cash balance of P 590,000 while the company's general ledger shows a cash balance of P 696,499. At March 31, the following checks were outstanding: No. 7163 - P 8,623; No. 7284 - P 7,320; No. 7285 - P 10,612; No. 8722 - P 6,322; No. 8724 - P 12,280; No. 8733 - P 6,200. Mando Rugas realizes that being the company cashier-accountant, he can easily misappropriate collections and conceal it. He removed all the cash on hand in excess of P 127,301. To conceal the theft, he prepared the following bank reconciliation. Balance per books Add: Outstanding checks 696,499 6,322 12,280 6,200 No. 8722 No. 8724 No. 8733 20,802 Total Less: Cash on hand 717,301 127,301 590,000 Balance per bank statement, March 31 19. How much was taken by the cashier- accountant?
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