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Question 2 View Policies Current Attempt in Progress Blossom Company is a very profitable small business. It has not, however, given much consideration to internal

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Question 2 View Policies Current Attempt in Progress Blossom 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 $20.171.00. Outstanding checks were No 62 for $153.00, No. 183 for $179.00, No. 284 for $259.00, No. 362 for $226.00. No 863 for $265.00, and No. 864 for $211.00. Included with the statement was a credit memorandum of $218.00 indicating the collection of a note receivable for Blossom Company by the bank of October 25. This memorandum has not been recorded by Blossom The company's ledger showed one Cash account with a balance of $23.732.00. 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 $3.905.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash. $23,732.00 Cash balance per books, October 31 Add: Outstanding checks No. 862 No. 863 No. 864 $226,00 265.00 211.00 Less: Undeposited receipts Unadjusted balance per bank, October 31 Less: Bank credit memorandum Cash balance per bank statement, October 31 562.00 24.294.00 3,905.00 20,389.00 218.00 $20,171.00 (a) Prepare a correct bank reconciliation Mint 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.) (Listite BLOSSOM COMPANY Bank Reconciliation

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