B (85 marks) Answer ALL questions from this section. QUESTION 1 (15 marks) Part I The Cash account in the general ledger of Churchill Trading Company shows a balance of $15,564 at December 31, 2021 (prior to performing a bank reconciliation). The company's bank statement shows a balance of $16,767 at the same date. An examination of the bank statement reveals the following: (i) Outstanding checks: No. 111 $300 No. 125 $600 No. 187 $2,589 (ii) Check no. 199 (for Electricity Expenses) was written for $888 but erroneously recorded in Churchill's records as $668 (iii) Deposit in transit $3,350 (iv) Note receivable collect by bank as Churchill's agent $2,982 (v) NSF check from Chris Chan $1,588 (vi) Interest expense charged by bank $110 Required: Prepare Churchill Trading Company's bank reconciliation as of December 31, 2021. Part II (9 marks) What are two primary reasons that the company's balance of cash will differ between its own records and those of the bank? Explain. (6 marks)