The following information is available for Unique Globe, as of May 31, 2011:

a. Cash on the books as of May 31 amounted to $43,784.16. Cash on the bank statement for the same date was $53,451.46.

b. A deposit of $5,220.94, representing cash receipts of May 31, did not appear on the bank statement.

c. Outstanding checks totalled $3,936.80.

d. A check for $1,920.00 returned with the statement was recorded incorrectly in the check register as $1,380.00. The check was for a cash purchase of merchandise.

e. The bank service charge for May amounted to $30.

f. The bank collected $12,000.00 for Unique Globe, on a note. The face value of the note was $12,000.000

g. An NSF check for $178.56 from a customer, Eve Lay, was returned with the statement.

h. The bank mistakenly charged to the company account a check for $750.00 drawn by another company.

i. The bank reported that it had credited the account for $250.00 in interest on the average balance for May.

1. Prepare bank reconciliation for Unique Globe Inc. as of May 31, 2011.

2. Prepare the entries in journal form necessary to adjust the accounts.

3. What amount of cash should appear on Unique Globes balance sheet as of May 31st?

4. Why is bank reconciliation considered an important control over cash?