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P7-3B Davaney Genetics Company of Milwaukee, Wisconsin, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the company's Cash account per

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P7-3B Davaney Genetics Company of Milwaukee, Wisconsin, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the company's Cash account per its general ledger showed the following balance. CASH NO. 101 Date Explanation Ref. Debit Credit Balance May 31 Balance 13,287 The bank statement from Milwaukee State Bank on that date showed the following balance. MILWAUKEE STATE BANK Checks and Debits Deposits and Credits Daily Balance XXX XXX 5/31 13,332 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. 1. The statement included a debit memo of $35 for the printing of additional company checks. 2. Cash sales of $1,720 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $1,820. The bank credited Davaney Genetics Company for the correct amount. 3. Outstanding checks at May 31 totaled $1,225, and deposits in transit were $2,600. 4. On May 18, the company issued check no. 1181 for $911 to J. Tallgrass on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Davaney Genetics Company for $119. 5. A $4,500 note receivable was collected by the bank for Davaney Genetics Company on May 31 plus $80 interest. The bank charged a collection fee of $25. No interest has been accrued on the note. 6. Included with the canceled checks was a check issued by Morray Company to Terry Irvin for $900 that was incorrectly charged to Davaney Genetics Company by the bank. v. On May 31, the bank statement showed an NSF charge of $1,308 for a check issued by Peter Reser, a customer, to Davaney Genetics Company on account. Instructions (a) Prepare the bank reconciliation at May 31, 2017. (b) Prepare the necessary adjusting entries for Davaney Genetics Company at May 31, 2017

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