Shamara Systems most recently reconciled its bank balance on April 30 and reported two checks outstanding at that time, No. 1771 for $781 and No. 1780 for $1,425.90. Check No. 1780 was still outstanding as of May 31. The following information is available for its May 31 reconciliation.

Additional Information:

(a) Check No. 1788 is correctly drawn for $654 to pay for May utilities; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Utilities Expense and a credit to Cash for $644. The bank paid and deducted the correct amount.

(b) The NSF check shown in the statement was originally received from a customer, W. Sox, in payment of her account. The company has not yet recorded its return.

(c) The collection of the note on May 25 has not yet been recorded by the company.

Required
1. Prepare the May 31 bank reconciliation for Shamara Systems.
2. Prepare journal entries to adjust the book balance of cash to the reconciled balance.

Transcribed Image Text:

Date May 1 May 1 May 2 May 4 May 4 May 11 May 14 May 18 May 22 May 25 May 25 May 26 May 26 May 29 May 31 Description Check # 1771 Check #1783 Check # 1782 Cash deposit Check #1784 Cash deposit NSF check Cash deposit Collected note Check # 1787 Check #1785 Cash deposit Check # 1788 Bank service charge Withdrawals Deposits $781.00 $382.50 $1,285.50 $1,449.60 $ 431.80 $8,032.50 $ 63.90 $654.00 14.00 $2,438.00 $2,898.00 $1,801.80 $7,350.00 $2,079.00 Balance $18,290.70 $17,509.70 $17,127.20 $15,841.70 $18,279.70 $16,830.10 $19,728.10 $19,296.30 $21,098.10 $28,448.10 $20,415.60 $20,351.70 $22,430.70 $21,776.70 $21,762.70