1) Bank Reconciliation Xenon, Inc.'s August 31 bank statement had an ending cash balance of $2,567. On August 31, Xenon?s general ledger showed a balance of $860. After comparing the general ledger to the bank statement, the following items were noted: ? Outstanding checks, $2,250 ? Interest paid by the bank , $12 ? An NSF check from one of Xenon?s customers, $32 ? Deposits in transit, $1,900 ? Service fee charged by the bank, $8 ? A direct deposit from a customer, $1,400 ? Check #345 was written to Acne insurance, the amount of the check was $615. It was recorded in the general ledger for $600. Required: (a) Prepare a bank reconciliation for Xenon Inc. (b) Make the required journal entries associated with the bank reconciliation. (c) Discuss the benefit and drawback of maintaining a checking account at a financial institution rather than paying all bills in cash. Please answer the attach, thank you" 22. (a) Xenon, Inc. Bank Reconciliation August 31, 20XX Balance per Bank Add: Deposits in transit Deduct: Outstanding checks Adjusted Bank Balance Balance per Books Add: Direct deposit from customer Interest earned Deduct: Error in recording check #345 for insurance NSF customer check Service fee Adjusted Bank Balance (b) Cash Accounts Receivable Cash Interest Revenue Insurance Expense Cash Accounts Receivable Cash Bank Service Charge Expense Cash (c) Benefits: Security of money, security of transactions (no mailing cash), record of transactions, availability of drafts and electronic funds transfers, interest earned on outstanding balances, third-party verification of balance Drawbacks: Service fee, possibility of overdrawing the account, possibility of fraudulent use of account