The cash account for Leisure Systems at Feb 29 2012, indicated a balance of $4,720. The bank statement indicated a balance of $18,650 on Feb 29, 2012. Comparing the bank statements and accompanying cancelled checks and memos with records reveals the following reconciling items

Checks outstanding totaled $13,960

2. Deposits of $9,350 representing receipts of February 29 had been made too late to appear on the bank statement.

3. The bank had collected $ 8,560 on a note left for collection. The face of the note was $8,000.

4. Bank service charge for February amounted $50.

5. A check drawn for $930 had been incorrectly charged by the bank as $390 6. A check for $520 had been incorrectly recorded by Leisure Systems as $790.The check had been for payment for supplies from Taft Co on account (actual amount owed was in fact $790).

Instructions: 1. Prepare the bank reconciliation. 2. Illustrate the effects on the accounts and financial statements of the bank reconciliation.