The owner of Comfort Hardware has completed bank reconciliation and cannot get the bank's records to agree with the cash records of his business. He concludes that internal control has somehow failed and cash is being misappropriated. He asks you to check the records and confirm or otherwise his suspicions. He provides the reconciliation statement at the end of last month, his cash records, and the most recent bank statement. Last month's reconciliation statement is presented below. Bank Reconciliation Statement as at 31st May 2014 Balance per bank statement 30 April 2014 $4328.90 Cr Add: Outstanding deposits $1224.50 5553.40 Less: Unpresented cheques 223.70 Balance per cash at bank account at 31st May 2014 $5329.70 Dr The total of the cash receipts journal for June was $64 767.30 and the total of the cash payments journal was $63 256.70. From the current bank statement it was noted that cheques presented and paid amounted to $57 925.10, and total deposits amounted to $64 870.60. There were also additional debits on the statement for a dishonored cheque for $201 and account fees for $20. An examination of the records revealed that all reconciling items at 31st May 2014 appeared in the bank statement for June, unpresented cheques at 30 June totaled $7 514.40 and that the 30th June deposit of $1590.40 had not been credited by the bank. Your check of the cash journals revealed that addition errors had been made by the clerks responsible. Receipts should have totaled $65 766.30 and payments should have totaled $63 185.60. Required: 1. Prepare the corrected cash book for Comfort Hardware. 2. Prepare the new bank reconciliation statement for Comfort Hardware. 3. Advise the owner of Comfort Hardware whether cash is being misappropriated (if so, by how much?) and recommend internal controls to avoid such fraud