P5-2 Bank reconciliation and entries The cash account for ALL American Sports Co. on April 1, 20Y5, indicated a balance of $23,600. During April, the total cash deposited was $80,150, and checks written totaled $72,800. The bank statement indicated a balance of $40,360 on April 30, 20Y5. Comparing the bank statement, the cancelled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $9,675. b. A deposit of $4,175, representing receipts of March 31, had been made too late to appear on the bank statement. c. The bank had collected $8,480 on a note left for collection. The face of the note was $8,000. d. A check for $180 returned with the statement had been incorrectly recorded by Recreational Systems for $810. The check was for a payment of an obligation to Jones Co. for the purchase of office supplies on account. e. A check drawn for $750 had been incorrectly charged by the bank as $570. f. Bank services charges for March amounted to $75. Instructions: 1. Prepare a bank reconciliation. 2. Illustrate the effects of the accounts and financial statements of the bank reconciliation.