Question 2 (Topic 7) - 9 marks Below is information about Adam Ltd's cash position for the month of May 2020. 1. The general ledger Cash at Bank account had a balance of $42,400 on 30 April. 2. The cash receipts journal showed total cash receipts of $585,408 for May. 3. The cash payments journal showed total cash payments of $530,148 for May. 4. The June bank statement reported a bank balance of $82,368 on 30 May. 5. Outstanding cheques at the end of May were: no. 221, $2896; no. 225, $308; and no. 230, $820. 6. Cash receipts of $20,180 for 31 May were not included in the May bank statement. 7. A dishonoured cheque written by a client Jim Ltd, $272 8. A credit for an electronic transfer from a customer of $1,288 9. Interest earned, $88 10. Account and transaction fees, $240. Required: a) Update the cash receipts and cash payments journals by adding the necessary adjustments and calculate the total cash receipts and cash payments for May. (4 marks) b) Post from cash receipts and cash payments journals to the Cash at Bank ledger account and balance the account. (1 mark) c) Prepare bank reconciliation statement at 31 May. (4 marks)