Refer to the data presented in E7-8 and E7-9. On May 31, Frobisher Limited had an unadjusted cash balance of $10,218 in the general ledger. The bank statement showed a balance of $12,756 on May 31.

In E7-8

On April 30, the bank reconciliation of Frobisher Limited shows a deposit in transit of $2,874. A list of cash deposits recorded by the bank and the company in the month of May follows:

Instructions
(a) Prepare the bank reconciliation on May 31.
(b) Prepare any adjusting journal entries required from the reconciliation. Assume that the EFT collection from a customer on May 25 shown in E7-8 has not yet been recorded.

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FROBISHER LIMITED Bank Statement (partial) Amounts Added to Account (Credits) FROBISHER LIMITED Cash Account (partial) Deposits Made (debits) Date Description Amount Date Amount $4,510 6,436 1,908 3,062 3,784 May 1 Deposit 8 Deposit 15 Deposit 20 Deposit 25 EFT, collection from customer 2,596 29 Deposit $2,874 May 7 14 19 28 31 4,510 6,436 1,908 3,062