Bank Reconciliation and Entries The cash account for Deaver Consulting at October 31, 2016, indicated a balance of $10,390. The bank statement indicated a balance of $13,420 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items! a. Checks outstanding totaled $4,830. b. A deposit of $5,030, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $2,620 on a note left for collection. The face of the note was $2,480. d. A check for $770 returned with the statement had been incorrectly recorded by Deaver Consulting as $700. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account. e. A check drawn for $730 had been incorrectly charged by the bank as $30. f. Bank service charges for October amounted to $20. Instructions: 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 2016 Cash balance according to bank statement Add: Deposit of October 31, not recorded by bank Deduct: Outstanding checks Deduct: Bank error in charging check as $30 instead of $730 Adjusted balance Cash balance according to Deaver Consulting Add: Proceeds of note collected by bank, including $140 interest $ Deduct: Error in recording check by the company as $700 instead of $770 Deduct: Bank service charges Adjusted balance 2. Illustrate the effects on the accounts and financial statements of the bank reconciliation. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Increase in Cash: Balance Sheet Statement of Cash Flows Assets Liabilities + Stockholders' Equity Income Statement Cash + Notes Recelvable No Effect + Retained Earnings Oct. 31. Statement of Cash Flows Income Statement Operating Interest revenue No effect Na effect Decrease in Cash: Balance Sheet Statement of Assets Liabilities + Income Statement Stockholders' Equity ' Cash Flows Cash + No Effect Accounts Payable + Retained Earnings Oct. 31. Statement of Cash Flows Income Statement Operating Miscellaneous administrative expense No effect 111 No effect