Elite Service 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, Steve Evans handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations. The balance per the bank statement on March 31, 2014, was $5.931.51. Outstanding checks were: No. 206 for $358.53, No. 441 for $292. No. 590 for $283.00, No. 781 for $286.00. No. 782 for $319.47, and No. 783 for $303.14. Included with the statement was a credit memorandum of $175 indicating the collection of a note receivable for Elite Service Company by the bank on March 21. This memorandum has not been recorded by Elite Service. The company's ledger showed one cash account with a balance of $6,889.53. The balance included undeposited cash on hand. Because of the lack of internal controls, Steve took for personal use all of the undeposited receipts in excess of $1,591.63. He then prepared the following bank reconciliation in an effort to conceal his theft of cash. Cash balance per books, March 31 $6,889.53 Add: Outstanding checks No. 781 $286.00 No. 782 319.47 No. 783 303.14 808.61 7,698.14 Less: Undeposited receipts 1,591.63 Unadjusted balance per bank, March 31 6,106.51 Less: Bank credit memorandum 175.00 Cash balance per bank statement, March 31 $5,931.51 Instructions Prepare a correct bank reconciliation (Hint: Deduct the amount of the theft from the adjusted balance per books.)