Barb Lee Inc. (BLI) is about to reconcile its bank statement for the month of May 2018. Pertinent information follows:

• Bank statement balance $11,003.74.
• General ledger balance $8,284.07.
• BLI mailed a deposit of $899.14 to the bank on May 28. The bank had not yet received it by month end.
• BLI issued cheques #124 for $2,041.25; #126 for $951.56; and #129 for $1,000 in May; however, these were not returned with the May 31 bank statement.
• BLI received notification that a cheque for $313 deposited to BLI’s account was returned NSF. The bank levied a $32 returned cheque charge.
• The bank statement included a $29 service charge for the month.

Required:
a. Prepare the cash reconciliation for Barb Lee Inc. as at May 31, 2018.
b. Prepare adjusting journal entries to correct for items noted in the cash reconciliation.