Adjusting the cash account
As of May 31, 2011, the bank statement showed an ending balance of $17,250. The unadjusted Cash account balance was $16,450. The following information is available:
1. Deposit in transit, $2,630.
2. Credit memo in bank statement for interest earned in May, $12.
3. Outstanding check, $3,428.
4. Debit memo for service charge. $ 10.
Required
a.Determine the true cash balance by preparing a bank reconciliation as of May 31, 2011, using the preceding information.
b.Record in general journal format the adjusting entries necessary to correct the unadjusted book balance.
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