Problem One Safety Systems reconciled its book balance of cash with its bank statement balance on April 30 and showed two cheques outstanding at that time, #1771 for $781 and #1780 for $1,325.90. The following information is available for the May 31, 2005 reconciliation: From the May 31, 2005 bank statement: Balance of the previous statement on April 30, 2005 5 Deposits and other credits totaling 9 Cheques and other debits totaling Current balance as of this statement $18,290.70 $16,416.80 $12,898.90 $21,808.60 Date Amount Transaction Date Amount Transaction May 04 2,438.00 14 2,898.00 Deposit Deposit May 25 26 7,200.00 Credit memo 2,079.00 Deposit 18 431.80 NSF Cheque 31 12.00 Service charge 22 1,801.80 Deposit Date Cheque No Amount Date Cheque No Amount May 01 1784 1,449.60 02 1783 195.30 May 26 28 1785 157.20 1771 781.00 15 1787 8,032.50 29 1788 554.00 16 1782 1,285.50 The Cash account in the General Ledger appeared as follows on April 30: Cash Date Explanation PR Debit Credit Account No 101 Balance 2005 April 30 May 31 31 Balance 16,183.80 CR7 11,743.10 27,929.90 CD8 12,656.70 15,270.20 Deposits Made May 4.. Total Cash Receipts From Safety Systems accounting records for the month of May: 14. D 22. 26.. 31. Cheques Written $2,438.00 2,898.00 .1,801.80 .2,079.00 No 1782 $1,285.50 1783. 195.30 1784. 1,449.60 1785. 157.20 .2,526.30 1786. 353.10 $11,743.10 1787. 8,032.50 1788... 544.00 1789. 639.50 Total Cash Disbursements $12,656.70 Cheque #1788 was correctly drawn for $554 to pay for May utilities; however, the bookkeeper misread the amount and entered it in the accounting records with a debit to Utilities Expense and a credit to Cash as though it were for $544. The bank paid and deducted the correct amount. The NSF cheque was originally received from a customer, Gertie Mayer, in payment of her account. Its return was unrecorded. The credit memorandum resulted from a $7,300 note that the bank collected for the company. The bank had deducted a $100 collection fee and deposited the remainder in the company's account. The collection has not been recorded. Required a) Prepare a bank reconciliation at May 31 b) Prepare the necessary journal entries to bring the General Ledger Cash account into agreeme with the adjusted balance on the bank reconciliation.