PROBLEMS 1. On May 31, the Cash in Bank (book) account of the Holden Company, a sole proprietorship had a balance of 57,822.71. On that date, the bank statement indicated a balance of 59,602.78. Comparison of returned checks and bank advices revealed the following: 1. Deposits in transit May 31 totaled $2,118. 1 Outstanding checks May 31 totaled $3,240.37. 5. The bank added to the account 542 20 of interest income earned by Holden during May 4. The bank collected a $2,000 note receivable for Holden and charged a $9.00 collection fee. Both items appear on the bank statement 5. Bank service charges in addition to the collection foc, not yet recorded on the books, were $20. 6. Included with the returned checks is a memo indicating that L. Jensen's en's check for $784 had been returned NSF. 7. Holden Company recorded the payment of an account payable as $63.50; the check was for $635 REQUIRED a Prepare a bank reconciliation for the Holden Company at May. b. Prepare the general joumal entry or entries necessary to bring the Cash in Bank account into agreement with the adjusted balance on the bank reconciliation