P7.10B (LO 4) AP You are given the following information for River Adventures Company: RIVER ADVENTURES COMPANY Bank Reconciliation April 30, 2021 Cash balance per bank Add: Deposits in transit $9,009 846 9,855 (continued) Les Outstanding cheques 56 22 -541 13 70 2.079 Adjusted cash balance perbank 57.776 The unadjusted cash balance at May SS. The Maybank statement showed the following RIVER ADVENTURES COMPANY Bank Statement May 31, 2021 Cheques and Other Debits Number Amount Deposits Date 56 $ Apr. 30 May 2 6 6 556 223 Amount 9.00 R. 497 134 7.911 7.361 8.341 6.691 7.117 3,767 980 550 LASO 12 13 13 14 1.650 16 2.045 21 5.923 6145 3,658 3,055 2.022 3,002 564 565 603 L033 440 27 28 31 1.771 NSE SC 40 Additional information from the bank statement 1. The deposit of $1.450 on May 13 is an electronic transfer from a customer in payment of its account. The amount includes $35 of interest, which River Adventures Company had not previ- ously accrued 2. The NSF far 5.440 is for a $425 chegue from customer, Ralph King, in payment of his account, plus a 515 processing fee. The company's policy is to pass on all NSF processing fees to the customer. 1. SC represents bank service charges for the month 4. The bank made an error when processing cheque #564. The company also made two errors in the month. All cheques were in to pay accounts payable: all cash receipts were collections of accounts receivable. The company's recorded cash payments and cash receipts for the month were as follows: Cash Receipts Cash Payments Date Amount Date Cheque No. Amount May 5 $1,250 May 2 556 $ 223 950 5 557 1.800 12 7 558 943 18 7 559 1,650 25 8 560 890 28 1.771 361 799 31 1.286 15 562 2.045 Total 36.835 16 563 2.887 20 306 23 565 1,033 566 950 Total $13,526 =gb=== Instructions a. Prepare a bank reconciliation. b. Prepare the necessary adjusting journal entries at May 31