1. On May 31, the Cash in Bank (book) account of the Holden Company, a sole proprietorship, had a balance of $7,822,71. On that date, the bank statement indicated a balance of $9,602.78. Comparison of returned checks and bank advices revealed the following: 1. Deposits in transit May 31 totaled $2,118. 2. Outstanding checks May 31 totaled \$3,240.37. 3. The bank added to the account $42.20 of interest income eamed by Holden during May. 4. The bank collected a $2,000 note receivable for Holden and charged a $9.00 collection fee. Both items appear on the bank statement. 5. Bank service charges in addition to the collection fee, not yet recorded on the books, were $20. 6. Included with the returnod checks is a memo indicating that L. Jensen's check for $784 had been retumed NSF. 7. Holden Company recorded the payment of an account payable as 563.50, the check was for $635. REQUIRED: 3. Prepare a bank reconciliation for the Holden Company at May. b. Prenare the general journal entry or entries necessary to bring the Cash in Bank account into agreement with the adjusted balance on the bank, teconciliation