P5-2 Bank reconciliation and entries The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $15,750. The bank statement indicated a balance of $31,095 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks and memos with the records re- vealed the following reconciling items: a. Checks outstanding totaled $10,125. b. A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. c The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. d. A check for $1,200 returned with the statement had been incorrectly recorded by Deaver Consulting as $120. The check was for the payment of an obligation to Oxford Office Sup- plies Co. for the purchase of office supplies on account. e. A check drawn for $320 had been incorrectly charged by the bank as $230 f. Bank service charges for October amounted to $70 Instructions 1. Prepare a bank reconciliation. 2. Illustrate the effects on the accounts and financial statements of the bank reconciliation