Question 2 --/4.5 View Policies Current Attempt in Progress Pharoah 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 $18,699.00. Outstanding checks were No. 62 for $150.00, No. 183 for $177.00, No. 284 for $265.00, No. 862 for $217.00, No. 863 for $228.00, and No. 864 for $177.00. Included with the statement was a credit memorandum of $190.00 indicating the collection of a note receivable for Pharoah Company by the bank on October 25. This memorandum has not been recorded by Pharoah. The company's ledger showed one Cash account with a balance of $22,624.00. 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 $4,187.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash. $22,624.00 Cash balance per books, October 31 Add: Outstanding checks $217.00 No. 862 No. 863 228.00 177.00 452.00 No. 864 23,076.00 Less: Undeposited receipts 4,187.00 Unadjusted balance per bank, October 31 Less: Bank credit memorandum 18,889.00 190,00 $18,699.00 Cash balance per bank statement, October 31 (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.) (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.) PHAROAH COMPANY Bank Reconciliation $ $