Problem 4-69B (Algorithmic) Bank Recondiliation The cash account of Mason Products reveals the following information: Cash Balance, 4/30 9,460 Deposits during May 39,600 Cheques written during May The bank statement for May contains the following information: 40,000 9,460 Bank balance, 4/30 Add: Deposits during May 37,400 $46,860 Less: Cheques paid during May $38,500 140 NSF cheque from Higgins, Inc. Bank service charges $70 $38,710 Bank balance 5/31 $8,150 A comparison of detailed company records with the bank statement indicates the following information: At 4/30 At 5/31 Deposits in transit $900 $2,200 Outstanding cheques 550 500 the bank amounts are determined to be correct. Required: 1. Prepare a bank reconciliation for May. Mason Products Bank Reconciliation Schedule May 31 Cash balance from bank statement Add: Deposit in transit Less: Outstanding cheques Obuol Adjusted cash balance Cash balance from company records Less: Service charge NSF cheque Adjusted cash balance $ ki Check My Work 2. Prepare the adjusting entries made by Mason Products as a result of the reconciliation process. May 31 Bank Service Charge Expense Cash (Record bank service charge) May 31 Accounts Receivable Cash (Record NSF cheque) Feedback Checkdy Work 3. What amount is reported for cash on the statement of financial position at May 317 5 N