Tamzen Systems most recently reconciled its bank balance on April 30 and reported two checks outstanding at that time, No. 1771 for $1,037 and No. 1780 for $516. The following information is available for its May 31, 2011, reconciliation.
From the May 31 Bank Statement

Additional Information
Check No. 1788 is correctly drawn for $238 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 $228. The bank paid and deducted the correct amount. 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. The credit memorandum is from a $1,540 note that the bank collected for the company. The bank deducted a $20 collection fee and deposited the remainder in the company€™s account. The collection and fee have not yet been recorded.
Required
1. Prepare the May 31, 2011, bank reconciliation for Tamzen Systems.
2. Prepare the journal entries to adjust the book balance of cash to the reconciled balance.
Analysis Component
3. The bank statement reveals that some of the prenumbered checks in the sequence are missing. Describe three possible situations to explain this.

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PREVIOUS BALANCE | TOAL CHECKS AND DEBTS | TOTAL DEPOSITS AND CREDITS | CURRENT BALANCE 18,500 8,041 11,611 22,070 CHECKS AND DEBITS Date No.Amount 05/01 1771 1,037 05/02 1783 782 05/04 1782 1,801 05/11 1784 424 05/18 05/25 1787 993 05/26 1785 2,056 05/29 1788 238 05/31 DEPOSITS AND CREDITS DAILY BALANCE Date 04/30 05/01 05/02 05/04 Amount 18,500 17,463 16,681 15,989 15,565 17,845 17,157 21,461 21,988 23,330 22,092 22,070 Date 05/04 05/14 05/22 05/25 05/26 Amount 1,109 2,280 4,304 1,520 см 2,398 688 NSF 05/14 05/18 05/22 05/25 05/26 05/29 05/31 22 SC From Tamzen Systems' Accounting Records Cash Recelpts Deposited Cash Disbursements Cash Date Credit ,109 2,280 4,304 2,398 1,716 1,807 No. 1782 1783 1784 1785 1786 1787 1788 789 1,801 782 424 2,056 935 993 228 371 7,590 14 26 31 Cash Acct. No. 101 Date Explanation PR Det Credit Balance Apr 30 Balance May Total receipts 6,947 28,754 21.164 R2 11,807 3 Total disbursements D23 7,590