Dawson Company offers tours within the Yukon. The owner, Raj Dawson, reviews the account

balances of the company on May

Raj realizes that in his books the cash account has a balance of $ while the bank statement

shows a balance of $

Raj knows that Ruby Mayo, a longtime customer, has made a $ deposit to his account on

May which the bank has not yet processed.

Last week, Raj had issued cheques totaling $ which have not yet cleared the bank.

Faro Li had paid him for a tour with a cheque for $ The bank has returned the cheque due

to insufficient funds. And not only that but now Raj needs to pay the $ NSF fee to the bank.

While reviewing the bank statement, Raj realizes that he has incorrectly recorded a rent expense

cheque payment of $ as $ in his general journal. Raj also realizes that the statement is

missing a deposit he had just made on May It was for $

Finally, the bank statement shows the collection of a note receivable for Dawson Company of

$ plus $ of interest.

Required:

a Prepare a bank reconciliation as of May Marks

b Prepare, in general journal form, the entries necessary to adjust Rajs records based on the

bank reconciliation. Marks