the following information is available to assist you in preparing a bank reconciliation for Cailico Corners on May 31,2010 a. the balance on the may 31,2010, bank statement is $8,432.11 b. not included on the bank statement is a $1,250 deposit made by calico corners lat on may 31 c. a comparison between the canceled checks returned with the bank statement and the company records indicated that the following checks are outstanding at may 31 no.123 $23.40 no.127 145.00 no.128 210.80 no.130 67.32 d. the cash account on the company's books shows a balance of 9,965.34 e. the bank acts as a collection agency for interest earned on some municipal bonds held by calico corners. the may bank statement indicates interest of 465.00 earned during the months f. interest earned on the checking account and added to calico corners account during may was 54.60. miscellaneous bank service charges amounted to 50.00 g. a customer's NSF check in the amount of 166.00 was returned with the may bank statement h. a comparison between the deposit listed on the bank statement and the company's books revealed that a customer's check in the amount of 123.45 was recorded on the books during may but was never added to the company's account. the bank erroneously added the check to the account to calico closet, which has an account at the same bank i. the comparison of deposit per the bank statement with those per the books revealed that another customer's check in the amount of 101.10 was correctly added to the company's account. in recording the check on the company's books, however, the accountant erroneously increased the cash account by $1,011.00 Required 1. prepare a bank reconciliation in good form 2. record the necessary journal entries on the company's books resulting from the bank reconciliation prepared in part (1) 3. a friend says to you: "i don't know why companies bother to prepare bank reconciliations it seems a waste of time. why don't they just do like I do and adjust the cash accounts for any difference between what the bank shows as a balance and what shows up in the books? explain to your friend why a bank reconciliation should be prepared as soon as a bank statement is received