Cullumber 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 $18,726.00. Outstanding checks were No. 62 for $153.00, No. 183 for $179.00, No. 284 for $262.00, No. 862 for $222.00, No. 863 for $249.00, and No. 864 for $203.00. Included with the statement was a credit memorandum of $208.00 indicating the collection of a note receivable for Cullumber Company by the bank on October 25. This memorandum has not been recorded by Cullumber. The companys ledger showed one Cash account with a balance of $22,529.00. 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 $4,099.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash.

(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.)