As of May 31, 2011, the bank statement showed an ending balance of ($ 17,250). The unadjusted
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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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