Problem 1:The bank reconciliation statement of Marygold Company as of 30 April 2018 showed an adjusted cash balance of P2,625 with a deposit in transit of P4,300 and three outstanding check as follows: No. 634 P1,080; No. 635, P675 and No. 636 P275. No debit or credit memorandum was issued by the bank during this month. Southeast Bank Current Account of Marygold Company Lipa City Period Covered May 2018 Check # Amount (Php) Deposit (Php) Date (May) Balance (Php) 1 2,625 634 1,080 4,300 2 638 8,500 8,000 3 637 900 4,000 9 735 2,250 10 4,000 10 7,000 16 641 2.625 5,800 23 100 SC 25 643 6,920 3,400 25 639 4,350 31 59,700 CM 31 70,450 Additional information: Check No. 735 is a check of Merigold Company erroneously charged to Marygold Company by the bank. Deposit of 10 May per bank statement was erroneously recorded by the depositor as P4,500 instead of P4,000. SC is a services charge on a returned inward clearing check. CM is a credit memo for loan proceeds released to the depositor: Principal P60,000, interest P300. Cash Disbursement Book Cash Receipts Book Date Amount in Php Date Check No. Amount in Php May 2 8,000 May 2 637 900 May 6 4,000 May 3 638 8,500 My 9 4,500 May 9 639 4,350 May 15 7,000 May 10 640 2,250 May 20 5,800 May 20 641 2,625 May 24 3,400 May 24 642 May 28 3,750 May 24 643 875 6,920 Prepare a bank reconciliation statement as of May 31, 2018 Also prepare the needed adjusting entries.