Current Attempt in Progress Waterway 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 $18,280. Outstanding checks were No. 62 for $140.00, No. 183 for $195.00, No. 284 for $257.75, No. 862 for $211.40, No. 863 for $239.00, and No. 864 for $180.40. Included with the statement was a credit memorandum of $260.80 indicating the collection of a note receivable for Waterway Company by the bank on October 25. This memorandum has not been recorded by Waterway. The company's ledger showed one Cash account with a balance of $21,910.00. 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 $4,000.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash. Cash balance per books, October 31 $21,910.00 Add: Outstanding checks No. 862 $211.40 No. 863 239.00 No. 864 180.40 630.80 22,540.80 Less: Undeposited receipts 4,000.00 Unadjusted balance per bank, October 31 18,540.80 Less: Bank credit memorandum 260.80 Cash balance per bank statement, October 31 $18,280.00 (a) Prepare a correct bank reconciliation. (Hint: Deduct the amount of the theft from the adjusted balance per Ca (Round answers to 2 decimal places, e.g. 52.75. List items that increase cash balance first.)