As of May 31 2016 the bank statement showed an
As of May 31, 2016, the bank statement showed an ending balance of $26,100. The unadjusted
Cash account balance was $27,350. The following information is available:
1. Deposit in transit, $6,981.
2. Credit memo in bank statement for interest earned in May, $36.
3. Outstanding check, $5,720.
4. Debit memo for service charge, $25.
Required
a. Determine the true cash balance by preparing a bank reconciliation as of May 31, 2016, using the preceding information.
b. Record in general journal format the adjusting entries necessary to correct the unadjusted book balance.
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