Question 4 incomplete answer Pri Marked out of 1.00 P Flag question Bank Reconciliation On May 31, the Cash in Bank account of Wallace Company, a sole proprietership, had a balance of 56,122.50 On that date, the bank statement indicated a balance of $7,933.50. A comparison of returned checks and bank advices revealed the following: 1. Deposits in transit May 31 totaled $2,709.05 2. Outstanding checks May 31 totaled $3,088.25 3. The bank added to the account $27.80 of interest income earned by Wallace during May. 4. The bank collected a $2.400 note receivable for Wallace and charged a $20 collection fee. Both items appear on the bank statement 5. Bank service charges in addition to the collection fee, not yet recorded were $20.00. 6. Included with the returned checks is a memo indicating that L. Ryder's check for $686.00 had been returned NSF. Ryder, a customer, had sent the check to pay an account of $700.00 less a discount of 2% 7. Wallace Company incorrectly recorded the payment of an account payable as $690.00 the check was for $960.00. Required a. Prepare a bank reconciliation for Wallace Company at May 31. b. Prepare the journal entry (or entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation Note: Do not round answers - enter using two decimal nlaces when needed Bank reconciliation Journal entries $ Add: Deposits not credited by bank 6122.5 WALLACE COMPANY Bank Reconciliation May 31 7933.5 Balance from general ledger 2709.5 Add: Less: Collection Fee Add: Interest Income 0 Subtotal Less: Collection of note Less: NSF Check Less: Check record 2400 Subtotal Less: Outstanding checks 20 686 0 0 270 Please answer all parts of the question. Deposits not credited by bank Ending balance from bank statement Outstanding checks Collection of note Service charge Reconciled cash balance Bank reconciliation Journal entries GENERAL JOURNAL Date Description May 31 Cash in Bank Miscellaneous Expense Debit Credit $ O O To record collection of note by bank, less collection fee. O O To record interest earned on bank account in May. 31 To record service charges. O O OOO Cash in Bank To reclassify NSF check as an account receivable. Please ar Accounts payable Accounts Receivable Cash in Bank Interest Income Miscellaneous Expense Notes Receivable Repairs Expense Sales Discounts Prev