No. 3 (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, 2014. 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, 2014, in the amount of $250. 2. Expenditures from the fund by the custodian as of May 31, 2014, were evidenced by approved receipts for the following. Postage expense $33.00 Mailing labels and other supplies 65.00 I.O.U. from employees 30.00 Shipping charges 57.45 Newspaper advertising 22.80 Miscellaneous expense 15.35 On May 31, 2014, the petty cash fund was replenished and increased to $300; currency and coin in the fund at that time totalled $26.40. Bank Reconciliation THIRD NATIONAL BANK BANK STATEMENT Balance, May 1, Disbursements Receipts Balance $8,769 Deposits Note payment direct from customer $28,000 930 $31,150 27 (interest of $30) Checks cleared during May Bank service charges Balance, May 31, 2014 Nottleman's Cash Account Balance, May 1, 2014 Deposits during May 2014 6,522 Checks written during May 2014 $ 8,850 31,000 (31,835) Deposits in transit are determined to be $3,000, and checks outstanding at May 31 total $850. Cash on hand (Undeposited receipts) at May 31, 2014, 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, 2014, 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, 2014, balance sheet