M.S. Food Stores, Inc. - Page 16

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            food stamps; i.e., items that can be taken to the bank.7                                       
            "Deposit" was the deposit made to the corporate petitioner's                                   
            checking account; the deposit amounts were usually rounded                                     
            figures that did not correlate with the "cash on hand" figures.                                
            "Savings" was used to record taxes such as payroll and sales                                   
            taxes accumulated but not yet due to the particular government                                 
            agency.  These tax amounts were not necessarily deposited in the                               
            corporate petitioner's savings account on the dates indicated on                               
            the green sheets; some were deposited as much as a month or                                    
            longer after the date of the entry on the green sheet.  Examples                               
            of these delayed deposits are:                                                                 
                         Amount             Green Sheet       Deposited                                    
                         $3,473.23          06-25-88          07-27-88                                     
                         3,710.84           07-02-88          07-27-88                                     
                         3,582.41           07-07-88          07-27-88                                     
                         3,351.64           07-10-88          07-27-88                                     
                         3,097.63           10-01-88          03-16-89                                     
                         2,768.09           11-12-88          03-17-89                                     
                         2,866.69           12-03-88          03-31-89                                     
                  Ms. Stroud prepared the corporate petitioner's monthly                                   
            financial statements based on the green sheets and the corporate                               
            petitioner's bank statements.  She did not have the cash register                              
            tapes, cash register reconciliations, or the bank deposit slips.                               
            During the process of completing the monthly accounting for the                                
            corporate petitioner, Ms. Stroud contacted Mr. Sutton if she had                               
            any questions.                                                                                 


            7  "Cash on hand" did not include coupon amounts or employee                                   
            I.O.U.'s for grocery charges that would be deducted from the                                   
            employee's paycheck.                                                                           



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