Crane 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 bookkeeper. 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, 2020, was $18,300. Outstanding checks were No. 62 for $160.20, No. 183 for $180, No. 284 for $255.25, No. 862 for $200.70, No. 863 for $239.00, and No. 864 for $174.90. Included with the statement was a credit memorandum of $94.60 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 companys ledger showed one Cash account with a balance of $21,950.00. The balance included undeposited cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $4,070.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash.

Cash balance per books, October 31					$21,950.00
Add:	Outstanding checks
	No. 862		$200.70
	No. 863		239.00
	No. 864		174.90		514.60
					22,464.60
Less: Undeposited receipts					4,070.00
Unadjusted balance per bank, October 31					18,394.60
Less: Bank credit memorandum					94.60
Cash balance per bank statement, October 31					$18,300

(a) Prepare a correct bank reconciliation. (Hint: Deduct the amount of the theft from the adjusted balance per books.)