Bank Reconciliation On May 31, the Cash in Bank account of James Company, a sole proprietorship, had a balance of $5,950.30. On that date, the bank statement indicated a balance of 7,868.50. A comparison of returned checks and bank advices revealed the following 1. Deposits in transit May 31 totaled $2,603.05 2. Outstanding checks May 31 totaled $3,152.45 3. The bank added to the account $19.80 of interest income earned by James during May. 4. The bank collected a $2,400 note receivable for James and charged a $30 collection fee. Both items appear on the bank statement 5. Bank service charges in addition to the collection fee, not yet retorded were $65.00 6. Included with the returned checks is a memo indicating that L. Ryder's check for $686.00 had been returned NSE Ryder, a customer, had sent the check to pay an account of $700.00 less a discount of 2%. 7. James Company incorrectly recorded the payment of an account payable as $360.00 the check was for $630,00. Required a. Prepare a bank reconciliation for James Company at May 31 b. Prepare the journal entry for entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation Note: Do not round answers.enter using two decimal places, when needed $ $ Add: 0 0 JAMES COMPANY Bank Reconciliation May 31 o Balance from general ledger 0 Add: Less: Collection Fee Add: Interest Income 0 Subtotal 0 Less: Less: NSF Check Less: Check record OOO Subtotal Less 0 0 0 0 $ 0 . $ 0 Check GENERAL JOURNAL Description Date Debit Credit May 31 $ 0 0 $ 0 Miscellaneous Expense 0 0 0 To record collection of note by bank, less collection fee. 31 > 0 0 . To record interest earned on bank account in May. 31 0 0 0 ( 0 To record service charges. 31 0 0 > 0 0 0 0 0 Cash in Bank To reclassify NSF check as an account receivable. 31 0 0 0 0 To correct error in recording check. Check