Bill Jovi is reviewing the cash accounting for Crane, Inc., a local mailing service. Jovis review will focus on the petty cash account and the bank reconciliation for the month ended May 31, 2017. He has collected the following information from Cranes bookkeeper for this task.

Petty Cash

1.The petty cash fund was established on May 10, 2017, in the amount of $290.00.

2.Expenditures from the fund by the custodian as of May 31, 2017, were evidenced by approved receipts for the following.

Postage expense	$38.28
Mailing labels and other supplies	75.40
I.O.U. from employees	34.80
Shipping charges (to customer)	66.64
Newspaper advertising	26.45
Miscellaneous expense	17.81

On May 31, 2017, the petty cash fund was replenished and increased to $348.00; currency and coin in the fund at that time totaled $30.62.

Bank Reconciliation

THIRD NATIONAL BANK BANK STATEMENT
Disbursements	Receipts	Balance
Balance, May 1, 2017	$10,172.04
Deposits	$32,480.00
Note payment direct from customer (interest of $34.80)	1,078.80
Checks cleared during May	$36,134.00
Bank service charges	31.32
Balance, May 31, 2017	7,565.52

Cranes Cash Account
Balance, May 1, 2017	$10,266.00
Deposits during May 2017	35,960.00
Checks written during May 2017	(36,928.60	)

Deposits in transit are determined to be $3,480.00, and checks outstanding at May 31 total $986.00. Cash on hand (besides petty cash) at May 31, 2017, is $285.36.

Prepare a bank reconciliation dated May 31, 2017, proceeding to a correct cash balance, and prepare the journal entries necessary to make the books correct and complete.