The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $10,980. The bank statement indicated a balance of $14,100 on October 31, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $5,080. b. A deposit of $5,290, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $2,750 on a note left for collection. The face of the note was $2,610. d. A check for $770 returned with the statement had been incorrectly recorded by Deaver Consulting as $700. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account. e. A check drawn for $740 had been incorrectly charged by the bank as $40. f. Bank service charges for October amounted to $50. Instructions: 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 20Y6 Cash balance according to bank statement Add: Deposit of October 31, not recorded by bank 10,980 X 5,290 16,270 X Deduct: Outstanding checks 5,080 Deduct: Bank error in charging check as $40 instead of $740 700 5,780 Adjusted balance 10,490 X Cash balance according to Deaver Consulting Add: Proceeds of note collected by bank, including $140 interest Deduct: Error in recording check by the company as $700 instead of $770 Deduct: Bank service charges Adjusted balance 10,980 2,890 X 13,870 X 40 X 50 90 X 13,780 X 2. Illustrate the effects on the accounts and financial statements of the bank reconciliation. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Increases to Cash: Balance Sheet Assets Liabilities + Cash Notes Receivable No Effect Oct. 31 2,750 -2,610 0 Stockholders' Equity Retained Earnings 90 X Statement of Cash Flows Income Statement Operating 2,750 Interest revenue 90 X Decreases to Cash: Balance Sheet Assets Liabilities Cash + No Effect Accounts Payable 140 X 0 Oct. 31 Statement of Cash Flows Operating 140 X + Stockholders' Equity + Retained Earnings -50 40 X Income Statement Miscellaneous administrative expense -50