XYZ Company is a small manufacturing firm. The company's accountant, Jane, has noticed some discrepancies between the company's financial records and the bank statement. She needs your assistance to resolve these issues.

Information:

1) Beginning cash balance (per company's records) on June 1, 20XX: $8,000.

2) Beginning cash balance (per bank statement) on June 1, 20XX: $7,500.

3) During June, XYZ Company recorded the following transactions in its books:

Cash sales: $5,000

Cash payments for rent: $2,000

Check #101 issued to Vendor A: $1,500 Check #102 issued to Vendor B: $1,200 Bank service charges: $25

Interest earned (credited by the bank): $50

4) The bank statement for June includes the following:

Deposits in Transit (not yet recorded by the company): $2,800 Outstanding checks (not yet cleared by the bank): $1,000

A customer's check returned due to insufficient funds (NSF): $300

Assignment Questions:

1) Calculate the reconciled cash balance as of June 30, 20XX, per the bank reconciliation process. Show your calculations.

2) Prepare a bank reconciliation statement that summarizes the adjustments made to reconcile the company's cash balance per its records with the bank statement.

3) Explain the significance of outstanding checks and deposits in transit in the bank reconciliation process. How do these items impact the cash balance?

4) Discuss the implications of the customer's check returned (NSF) on XYZ Company's financial records and the bank reconciliation.

5) What actions should XYZ Company take to address the discrepancies and maintain accurate financial records going forward?

6) Explain the importance of segregation of duties in internal control. Provide an example of how segregation of duties can prevent or detect fraudulent activities within an organization.

7) Why is it crucial for a business to regularly perform bank reconciliations? Discuss the potential consequences of neglecting this financial control process.