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, 2022, was $ 18,263.00. Outstanding checks were No. 62 for $ 154.00, No. 183 for $ 173.00, No. 284 for $ 253.00, No. 862 for $ 219.00, No. 863 for $ 271.00, and No. 864 for $ 178.00. Included with the statement was a credit memorandum of $ 236.00 indicating the collection of a note receivable for Crane Company by the bank on October 25. This memorandum has not been recorded by Crane. The companys ledger showed one Cash account with a balance of $ 22,039.00. 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 $ 4,008.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash.

Cash balance per books, October 31				$ 22,039.00
Add: Outstanding checks
No. 862		$ 219.00
No. 863		271.00
No. 864		178.00		468.00
				22,507.00
Less: Undeposited receipts				4,008.00
Unadjusted balance per bank, October 31				18,499.00
Less: Bank credit memorandum				236.00
Cash balance per bank statement, October 31				$ 18,263.00

(a) Prepare a correct bank reconciliation. (Hint: Deduct the amount of the theft from the adjusted balance per books.) (List items that increase balance as per bank & books first. Round answers to 2 decimal places, e.g. 52.50.)

CRANE COMPANY Bank Reconciliation choose the accounting period For the Month Ended October 31, 2022For the Year Ended October 31, 2022October 31, 2022
select an opening name for section one Adjusted balance per bankBank credit (collection of note receivable)Outstanding checksTheftUndeposited receiptsBalance per bank statement					$ enter a dollar amount
select between addition and deduction AddLess:	select a reconciling item Outstanding checksBalance per bank statementAdjusted balance per bankUndeposited receiptsBank credit (collection of note receivable)Theft				enter a dollar amount
					enter a subtotal of the two previous amounts
select between addition and deduction AddLess:	select a reconciling item Outstanding checksAdjusted balance per bankTheftUndeposited receiptsBank credit (collection of note receivable)Balance per bank statement
	select a check number No. 62No. 183No. 284No. 862No. 863No. 864No. 63No. 184No. 285		$ enter a dollar amount
	select a check number No. 62No. 183No. 284No. 862No. 863No. 864No. 63No. 184No. 285		enter a dollar amount
	select a check number No. 62No. 183No. 284No. 862No. 863No. 864No. 63No. 184No. 285		enter a dollar amount
	select a check number No. 62No. 183No. 284No. 862No. 863No. 864No. 63No. 184No. 285		enter a dollar amount
	select a check number No. 62No. 183No. 284No. 862No. 863No. 864No. 63No. 184No. 285		enter a dollar amount
	select a check number No. 62No. 183No. 284No. 862No. 863No. 864No. 63No. 184No. 285		enter a dollar amount
					enter subtotal for the previous six amounts
select a closing name for section one Balance per bank statementUndeposited receiptsAdjusted balance per bankTheftOutstanding checksBank credit (collection of note receivable)					$ enter a total amount for the first section
select an opening name for section two TheftAdjusted balance per books (before theft)Outstanding checksCash balance per booksBank credit (collection of note receivable)Adjusted balance per booksUndeposited receipts					$ enter a dollar amount
select between addition and deduction AddLess:	select a reconciling item Adjusted balance per books (before theft)Undeposited receiptsTheftBank credit (collection of note receivable)Outstanding checksAdjusted balance per booksCash balance per books				enter a dollar amount
select a closing name for section one Adjusted balance per books (before theft)Undeposited receiptsTheftBank credit (collection of note receivable)Cash balance per booksAdjusted balance per booksOutstanding checks					enter a total amount for the first section
select between addition and deduction AddLess:	select a reconciling item Bank credit (collection of note receivable)TheftUndeposited receiptsAdjusted balance per books (before theft)Cash balance per booksAdjusted balance per booksOutstanding checks				enter a dollar amount
select a closing name for section two Adjusted balance per books (before theft)Undeposited receiptsCash balance per booksAdjusted balance per booksTheftBank credit (collection of note receivable)Outstanding checks					$ enter a total amount for the second section