QUESTION 1 1. The following bank reconciliation was prepared as of July 31 for Maestro Corp. $4,690 Maestro Corp. Bank Reconciliation July 31 Cash balance according to bank statement Adjustments: Deposits in transit not recorded by bank Outstanding checks Total adjustments Adjusted balance $1,020 715 1.735 $6,425 $5.080 Cash balance according to company's records Adjustments: Bank service charge $45 Error in recording July 3 deposit as $540 instead of $500 40 Total adjustments 85 Adjusted balance $5,165 (a) Identify the errors in the bank reconciliation. Assume that both cash balances before adjustment are correct (b) Prepare a corrected bank reconciliation