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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, 2022, was $19,643.00. Outstanding checks were No. 62 for $143.00, No. 183 for $172.00, No. 284 for $255.00, No. 862 for $199.00, No. 863 for $227.00, and No. 864 for $211.00. Included with the statement was a credit memorandum of $250.00 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 companys ledger showed one Cash account with a balance of $23,245.00. 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 $3,859.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash.

Cash balance per books, October 31				$23,245.00
Add: Outstanding checks
No. 862		$199.00
No. 863		227.00
No. 864		211.00		507.00
				23,752.00
Less: Undeposited receipts				3,859.00
Unadjusted balance per bank, October 31				19,893.00
Less: Bank credit memorandum				250.00
Cash balance per bank statement, October 31				$19,643.00

(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 choose the accounting period
select an opening name for section one					$enter a dollar amount
select between addition and deduction AddLess:	select a reconciling item				enter a dollar amount
					enter a subtotal of the two previous amounts
select between addition and deduction AddLess:	select a reconciling item
	select a Check Number		$enter a dollar amount
	select a Check Number		enter a dollar amount
	select a Check Number		enter a dollar amount
	select a Check Number		enter a dollar amount
	select a Check Number		enter a dollar amount
	select a Check Number		enter a dollar amount
					enter a total amount for this reconciling item
select a closing name for section one					$enter a total amount for the first section
select an opening name for section two					$enter a dollar amount
select between addition and deduction AddLess:	select a reconciling item				enter a dollar amount
select a reconciling item					enter a subtotal of the two previous amounts
select between addition and deduction AddLess:	select a reconciling item				enter a dollar amount
select a closing name for section two					$enter a total amount for the second section

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