P7-5B. Bank Reconciliation The bank reconciliation made by Adam Company, a sole proprietorship.com March 31 showed a deposit in transit of $1,300 and two outstanding checks, No. 797 for $550 and No. 804 for $690. The reconciled cash balance on March 31 was $12,020. The following bank statement is available for April 30: Bank Statement TO April 30 Adam Company Fairbanks, AK FAIRBANKS NATIONAL BANK Date Deposits No. Date Charges Date Balance Apr. Apr. 1 3 7 13 18 23 27 30 30 $1,300 1,680 1.250 1,020 840 990 1,340 1,160 95IN 804 807 808 809 810 811 813 814 NSF SC 2. 3 7 7 16 13 27 23 18 30 $ 690 730 1,240 838 1,040 541 640 600 500 40 Mar. 31 Apr. 1 2 3 7 13 16 18 23 27 30 CM: Credit Memo RT: Returned Item $11,960 13,260 12,570 13,520 12,692 13,171 12,131 12,471 12,861 13,561 14,776 Item Codes: EC: Error Correction SC: Service Charge IN: Interest Earned DM: Debit Memo OD: Overdraft NSF: Non-sufficient Funds A list of deposits made and checks written during April is shown below: Cambridge Business Publishers Chapter 7 Internal Control and Cash Deposits Made Checks Written Apr 2 6 10 17 22 24 29 30 $1,680 1.250 1,020 840 990 1,340 1,160 1.425 No. 807 808 809 810 811 812 813 814 815 816 $ 730 1,240 838 1,040 451 948 640 600 372 875 $7,734 $9,705 The Cash in Bank account balance on April 30 was $13.991. In reviewing checks returned by the bank, the accountant discovered that check No. 811, written for $541 for delivery expense, was recorded in the cash disbursements journal as $451. The NSF check for $500 was that of customer R. Koppa, deposited in April. Interest for April added to the account by the bank was $95. Required Prepare a bank reconciliation for Adam Company at April 30. b. Prepare the necessary journal entries to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation. a Hi, can you please help me understand all the steps with formulas. Thanks, I will give a rating! ***Please answer all parts for credit! Thanks, I appreciate it