SECTION B ANSWER ANY ONE (1) QUESTION QUESTION 2 (25 MARKS) Rennals Medical Complex recently received its bank statement for the month of August, 2017 from Citizens Commercial Bank. The book balance as stated in the cash account differs from the balance that appears on the bank statement. Comparing the bank statement, the canceled cheques and the accompanying memos with the records revealed the following reconciling items: 1) The ledger account for Cash showed a balance at August 31 of $7,280 ii) The August bank statement showed a closing balance of $12,550. iii) Examination of the paid cheques revealed that cheques #441 and #443 for $4,500 and $2,940, respectively, were not amongst the cancelled cheques returned with the statement. iv) During the evening of August 31, a deposit of $2,880 was placed in the night deposit box at the bank after closing hours; this is not shown on the bank statement. v) The bank collected $2,080 on a note left for collection. The face of the note was $2,000. vi) A cheque for $580 returned with the statement had been incorrectly charged by the bank as $850. vii) A cheque for $900 from Lakeland Express was returned by the bank due to "Unauthorized signature". viii) A cheque for $640 returned with the statement had been recorded by Rennals Medical Complex as $460. The cheque was for the payment of an obligation to Brown Co. for a purchase on account. ix) Bank service charges for August amounted to $20. Required: 31. a) Prepare a bank reconciliation statement for Rennals Medical Complex as of August 31, 2017. State the amount of cash that should be included in the balance sheet at August (11 marks) b) Prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of August 31, 2017. (6 marks) e) Identify three internal controls that most businesses use to safeguard its assets and ensure accurate and reliable accounting records? (3 marks) d) State and explain four reasons why the cash balance as per the bank statement is often different from the cash book balance in a business' accounting records. (5 marks)