Bank Reconciliation The following information is available to assist you in preparing a bank reconciliation for Calico Corners on May 31: a. The balance on the May 31 bank statement is $8,432.11. b. Not included on the bank statement is a $1,250 deposit made by Calico Corners late on May 31. c. A comparison between the canceled checks returned with the bank statement and the company records indicated that the following checks are outstanding at May 31: No. 123 $23.40 No. 127 145.00 No. 128 210.80 No. 130 67.32 d. The Cash account on the company's books shows a balance of $9,965.34. e. The bank acts as a collection agency for interest earned on some municipal bonds held by Calico Corners. The May bank statement indicates interest of $465.00 earned during the month. f. Interest earned on the checking account and added to Calico Corners' account during May was $54.60. Miscellaneous bank service charges amounted to $50.00. g. A customer's NSF check in the amount of $166.00 was returned with the May bank statement. h. A comparison between the deposits listed on the bank statement and the company's books revealed that a customer's check in the amount of $123.45 was recorded on the books during May but was never added to the company's account. The bank erroneously added the check to the account of Calico Closet, which has an account at the same bank. i. The comparison of deposits per the bank statement with those per the books revealed that another customer's check in the amount of $101.10 was correctly added to the company's account. In recording the check on the company's books, however, the accountant erroneously increased the Cash account by $1,011.00. Required: Enter all amounts rounded to the nearest cent. 1. Prepare a bank reconciliation in good form. Calico Corners Bank Reconciliation May 31 Balance per bank statement, May 31 DO No. 123 No. 127 No. 128 No. 130 Adjusted balance, May 31 Balance per books, May 31 $ $ Adjusted balance, May 31 2. Record the necessary journal entries on the company's books resulting from the bank reconciliation prepared in part (1) above. Present the transactions in the order in which they appear on the bank reconciliation. Indicate the effect on financial statement items by selecting "L" for decrease (or negative effect), "+' for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Journal Balance Sheet Income Statement Net Stockholders' Equity Date Description Debit Credit Assets Liabilities Revenues Expenses Income May 31 Journal Balance Sheet Income Statement Stockholders' Net Date Description Debit Credit Assets Liabilities Equity Revenues Expenses Income May 31 Journal Balance Sheet Income Statement Net Stockholders Equity Date Description Debit Credit Assets Liabilities Revenues Expenses Income May 31 Journal Balance Sheet Income Statement Stockholders' Net Date Description Debit Credit Assets Liabilities Equity Revenues Expenses Income May 31 3. A bank reconciliation needs to be prepared to in
