Problem 7-6A 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, 2017, 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 company's 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. $22,039.00 Cash balance per books, October 31 Add: Outstanding checks No. 862 No. 863 No. 864 $219.00 271.00 178.00 Less: Undeposited receipts Unadjusted balance per bank, October 31 Less: Bank credit memorandum Cash balance per bank statement, October 31 468.00 22,507.00 4,008.00 18,499.00 236.00 $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.) CRANE COMPANY Bank Reconciliation