On May $31,$ JB Games Ltd$.$ received its bank statement from the East Coast Savings Bank showing that JB had a balance of $$13,000.$

The company's general ledger showed a cash balance of $$8,440$ at that date. A comparison of the bank statement and the accounting

records revealed the following information:

A cheque from one of JB$\text{'}$s customers in the amount of $$1,160$ that had been deposited during the last week of May was

returned with the bank statement as NSF$.$

Bank service charges for the month were $$65.$

The company had written and mailed out cheques with a value of $$4,690$ that had not yet cleared the bank.

Cheque #$791,$ which was a payment for advertising expenses of $$240,$ was incorrectly recorded in the general ledger as $$420.$

During the month, one of JB$\text{'}$s customers paid their account using an electronic funds transfer. Their payment was for $$3,465.$

The cash receipts for May $31$ amounted to $$2\mathrm{.}550$ and had been deposited in the night drop slot at the bank on the evening of

May $31.$ These were not reflected on the bank statement for May.

a$.$ prepare the bank reconcilation for JB at May $31$

b$.$ What cash should JB report on its statement of financial position as at May $31?$

c$.$Prepare the journal entries necessary as a result of the bank reconcilation prepared in part $"$a$".$