Instructions Prepare a schedule showing the income statement effects for the year ended December 31, 2017, as a result of the above facts. *P7-12 (LO8) (Petty Cash, Bank Reconciliation) Bill Jovi is reviewing the cash accounting for Nottleman, Inc., a local mailing service. Jovi's 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 Nottleman's bookkeeper for this task. Petty Cash 1. The petty cash fund was established on May 10, 2017, in the amount of $250. 2. Expenditures from the fund by the custodian as of May 31, 2017, were evidenced by approved receipts for the following 6500 Postage expense Mailing labels and other supplies LOU. from employees Shipping charges (to customer) 574S Newspaper advertising 22 80 Miscellaneous expense 15.35 On May 31, 2017, the petty cash fund was replenished and increased to $300; currency and coin in the fund at that time totaled $26.40. Bank Reconciliation THIRD NATIONAL BANK BANK STATEMENT Disbursements Receipts Balance Balance, May 1, 2017 $8,769 Deposits $28,000 Note payment direct from customer (interest of S30) Checks cleared during May 531,150 Bank service charges Balance, May 31, 2017 Problems 375 Nottleman's Cash Account Balance, May 1, 2017 $ 8.850 Deposits during May 2017 31,000 Checks written during May 2017 (31,835) Deposits in transit are determined to be $3,000, and checks outstanding at May 31 total $850. Cash on hand (besides petty cash) at May 31, 2017, is $246. Instructions (a) Prepare the journal entries to record the transactions related to the petty cash fund for May. (b) 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. (c) What amount of cash should be reported in the May 31, 2017, balance sheet