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.