Bank Reconciliation and Entries The cash account for Highlander Diamond Co. on April 1, 2045, indicated a balance of $35,400. During April, the total cash deposited was $120,255, and checks written totaled $109,200. The bank statement indicated a balance of $60,927 on April 30, 20Y5. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $21,450. b. A deposit of $13,913, representing receipts of April 30, had been made too late to appear on the bank statement. C. A check for $710 had been incorrectly charged by the bank as $170. d. A check for $220 returned with the statement had been recorded by Highlander Diamond Co. as $2,200. The check was for the payment of an obligation to Dirt Dog Inc. on account. e. The bank had collected for Highlander Diamond $6,480 on a note left for collection. The face of the note was $6,000. f. Bank service charges for April amounted to $115. g. A check for $1,950 from Fly Ball Co. was returned by the bank because of insufficient funds. Instructions: 1. Prepare a bank reconciliation as of April 30. HIGHLANDER DIAMOND CO. Bank Reconciliation April 30, 2015 Cash balance per bank statement Add: Deposit of April 30, not recorded by bank Deduct: Outstanding checks Deduct: Bank error in charging check as $170 instead of $710 Adjusted balance Cash balance per Highlander Diamond Co. Add: Proceeds of note collected by bank, including $480 interest Add: Error in recording check as $2,200 by company instead of $220 Deduct: Check returned because of insufficient funds $ Deduct: Bank rvice 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. Increases to Cash: Balance Sheet Assets Liabilities + Stockholders' Equity Cash + Notes Receivable Accounts Payable + Retained Earnings April 30 Statement of Cash Flows Income Statement Operating Interest revenue Decreases to Cash: Balance Sheet Assets Liabilities + Stockholders' Equity Cash + Accounts Receivable No Effect + Retained Earnings April 30 Statement of Cash Flows Income Statement Operating Miscellaneous administrative expense