Wildhorse 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 $19,138.00. Outstanding checks were No. 62 for $162.00, No. 183 for $181.00, No. 284 for $283.00, No. 862 for $204.00, No. 863 for $235.00, and No. 864 for $209.00. Included with the statement was a credit memorandum of $229.00 indicating the collection of a note receivable for Wildhorse Company by the bank on October 25. This memorandum has not been recorded by Wildhorse. The companys ledger showed one Cash account with a balance of $22,862.00. 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 $3,973.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash.

Cash balance per books, October 31				$22,862.00
Add: Outstanding checks
No. 862		$204.00
No. 863		235.00
No. 864		209.00		478.00
				23,340.00
Less: Undeposited receipts				3,973.00
Unadjusted balance per bank, October 31				19,367.00
Less: Bank credit memorandum				229.00
Cash balance per bank statement, October 31				$19,138.00

(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.)

--/4.5 Question 2 View Policies Current Attempt in Progress Wildhorse 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 $19,138.00. Outstanding checks were No. 62 for $162.00, No. 183 for $181.00, No. 284 for $283.00, No. 862 for $204.00, No. 863 for $235.00, and No. 864 for $209.00. Included with the statement was a credit memorandum of $229.00 indicating the collection of a note receivable for Wildhorse Company by the bank on October 25. This memorandum has not been recorded by Wildhorse. The company's ledger showed one Cash account with a balance of $22,862.00. 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 $3,973.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash. $22,862.00 Cash balance per books, October 31 Add: Outstanding checks No. 862 No. 863 No. 864 $204.00 235.00 209.00 Less: Undeposited receipts Unadjusted balance per bank, October 31 Less: Bank credit memorandum Cash balance per bank statement, October 31 478.00 23,340.00 3,973.00 19,367.00 229.00 $19,138.00 (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.) WILDHORSE COMPANY Bank Reconciliation --/4.5 Question 2 View Policies Current Attempt in Progress Wildhorse 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 $19,138.00. Outstanding checks were No. 62 for $162.00, No. 183 for $181.00, No. 284 for $283.00, No. 862 for $204.00, No. 863 for $235.00, and No. 864 for $209.00. Included with the statement was a credit memorandum of $229.00 indicating the collection of a note receivable for Wildhorse Company by the bank on October 25. This memorandum has not been recorded by Wildhorse. The company's ledger showed one Cash account with a balance of $22,862.00. 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 $3,973.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash. $22,862.00 Cash balance per books, October 31 Add: Outstanding checks No. 862 No. 863 No. 864 $204.00 235.00 209.00 Less: Undeposited receipts Unadjusted balance per bank, October 31 Less: Bank credit memorandum Cash balance per bank statement, October 31 478.00 23,340.00 3,973.00 19,367.00 229.00 $19,138.00 (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.) WILDHORSE COMPANY Bank Reconciliation