Bank Reconciliation and Entries The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $10,480. The bank statement indicated a balance of $13,610 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 $4,900 b. A deposit of $5,100, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $2,650 on a note left for collection. The face of the note was $2,520. d. A check for $880 returned with the statement had been incorrectly recorded by Deaver Consulting as $800. 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 $840 had been incorrectly charged by the bank as $40 f. Bank service charges for October amounted to $40. 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 20Y6 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 $40 instead of $840 Adjusted balance Cash balance according to Deaver Consulting 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 Income Assets Liabilities + Stockholders' Equityy Flows Statement Oct. 31 Statement of Cash Flows Income Statement Decrease in Cash Balance Sheet Statement of Cash Income Assets -LiabilitiesStockholders' Equity Flows Statement Oct. 31 Statement of Cash Flows Income Statement